Monday, June 04, 2012

NASDAQ Tests Major Support



It's been awhile since I've posted on here so I figured now might be a good time to say hello and write about what I am looking at as far as the NASDAQ is concerned.

Above is a weekly chart of the NASDAQ100 (NDX) and in the lower panel is the stochastic oscillator You'll notice that the NASDAQ is now testing a major uptrend line that began in March 2009. This market is also testing a strong support area highlighted in blue. The stochastic oscillator is in an oversold area where previous bottoms have developed. The only negative is that on a seasonal basis the market usually comes under pressure from May going into September.

The long term trend is still clearly up so I will be looking for a potential buy signal if I see the stochastic  oscillator close back above the 25 line. As always, we'll see what happens.

6 comments:

Anonymous said...

Good to see you still out on the Internets Kevin.

Anonymous said...

thanks! kev

wer1 said...

As always, Kevin, you give us the "Big Picture" and as always, appreciate the clarity. Thanks, wer1

Steve said...

Great to hear your perspective again. Thanks!

wer1 said...

Kevin, Always appreciate your "Big Picture" view. Thanks
wer1

Kevin said...

Thanks guys, I appreciate it.

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