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.