Boy, this is a tough market! Certainly, I like days that we rally; ’cause this is “happy” trading! Then, I’m more excited to look at stocks because they are much more pleasant to look at. But, you’d have to look at the chart signals, “technically”, and not emotionally. So, let’s see what we have:
Nasdaq closed just below the 10-day MA.
We have a support level at 2401, which now pretty much coincides with the 20-day MA. The MACD and RSI have been sliding the past couple of days. Let’s take a look at the intraday chart: We see that we pretty much reached the top on 3/21 at around 2460. Didn’t have quite enough momentum to push through that resistance, as most of other indicators (MACD, MFI, RSI) also topped out. Now, we have the support at around 2401. We can see that the same indicators are beginning to bottom out. The question for tomorrow, and perhaps the next couple of days, would be “would this support hold?” Can we bounce off and create a near-term range bottom to re-test 2460? We’ll have to patiently, but, vigilently, wait and see. (The Nasdaq chart resembles those of the other indices, ie. SPX, DJI…etc, for the near-term.)
Now, SOX, the index for the semi-conductors, a sector that is very important for sustainable rallies in techs, really needs to get its acts together.
It closed below the mid-point level of the trading range that we’ve been in, at around 474 (the green line across the chart). We’re now sitting right at the next support line, around 469.
Apparently, the “W” pattern that I pointed out a few days ago did not take off like last time in November. This time, we’re testing the bottom from our recent bounce again. Hope the 469 level holds, or, we might test 460 level again.
Ok, let’s talk about something brighter! Like Cramer says, “There’s always a bull-market somewhere!”
CN had a nice day today. It showed the similar pattern as many other stocks for the past few weeks (coming up to resistance level, with upper BB very close by). But, today, it broke resistance and actually caught the upper BB.
The other indicators (MACD, MFI, RSI, and volume) are all looking great, too! We might see CN start climbing that upper BB! Go CN!!