Right from the opening today, the bears grabbed the market, from more bad news in the housing sector to so-so consumer sentiment. But, the bulls hung on with poise. GOOG even, almost, managed to close green!
Let's take a look at Nasdaq's charts:
Last night, I said that I'd like to see the upper BB and the 20-day MA of Nasdaq turn up (same for other major indices). Even though we had a down day, both of these conditions happened. What this does is opening up the potential for a bigger rally, if the Nasdaq can break above the resistance at 2457 and catch the upper BB. Let's also take a look at the weekly chart:
The weekly chart shows that Nasdaq is still operating within the BBs, with the BBs narrowing, but, with an uptrend bias (bottom BB going up). The MACD has flattened and is turning up. The 10-wk MA has flattened and the 20-wk MA has continued its upward movement, even after the recent selloff.So, to me, the charts say that we still have a bullish bias:
1) the resistance at 2457 is near and reachable
2) the upper BB is near and reachable
Once the above 2 conditions are met, I think we'll re-test 2500. These conditions are similar in other major indices.
GOOG made a heroic effort to close green, but, just came out shy. There are still a couple of good things:
Basically, the same things as the Nasdaq: both the upper BB and 20-day MA turned up. Also, note the lower volume.So, the market situation, I think, is this: We have recovered, for the most part, above the 10, 20, 30-day MAs and have an immediate resistance that is near and reachable, with the upper BB also in the vicinity. If the MAs provide good support, I feel that the markets have a good chance to rally higher and re-test the highs before the quick selloff.
No comments:
Post a Comment