NASDAQ - Oscillator Buy Signal

Above is a daily chart of the NASDAQ (NDX) and in the lower pane is the Williams %R oscillator. Notice since last March there have been 4 oversold readings with 3 of these readings resulting in a profitable rally. Now we are seeing the oscillator once again in an oversold condition and the NASDAQ appears to be heading back up. What's significant about this last pullback is that the NASDAQ has tested a very important trendline line which seems to be holding and providing support for the market.

I think we will see a retest of last month's high however a move below last week's low will negate the bullish outlook. As long as this major trendline continues to hold, I have to trade with the bulls and look for higher prices.