Where is NASDAQ headed?
Though very long term predictions are not part of our system's philosophy and our trades are a matter of hours to few days, here's my reading for the market based on the oscillators in the NASDAQ Comp charts. And I insist that this is "my" reading because the philosophy of safety and extent of speculation depends on the individual.
Also keep in mind that the momentum goes from the faster to the slower oscillators, so if things change, I will post an update.
If you look at the End-of-Day chart of COMP, you see the Pink there in the top left panel. I expect that Pink to have a downward streak. The sluggishness of Black at the zero lines is only a minor spot of bother at this time.
In the Intraday chart, the Blue in the bottom right panel still has some downside in the near term. This is the dip that started today. When it is complete, I expect the earlier mentioned Pink to flatten out. This should be next 2-3 days.
Then we'll have either a sluggish period or a brief upside in the market when this Blue moves up while the Pink stays flat.
After that both of them will head down and that will be the beginning of a longer bear period.
It should last as long as the half period of the Pink which is around a month.
However, it is quite possible that the downward move of Blue that has started now will be so strong, that it will not simply flatten but turn the Pink right away :-)
Happy Trading!
Get Access to Our Service for only $49.99 per month when you use the Promo Code:FALL2010 to sign up for the 30-day
FREE TRIAL Drop us an email if you want to extend the trial period!Follow Us on Twitter
