I feel like a yo-yo, up a lot, down a lot, up, down, up, down ... Stan's been great as far as keeping us up to date with support levels, and I have been watching them almost as much as the prices on my stocks. Here's more on that subject that I found to be rather encouraging:
Thursday March 30, 5:58 pm Eastern Time
Nasdaq index not showing long-term top - chartists
CHICAGO, March 30 (Reuters) - The Nasdaq Composite Index fell 4 percent Thursday, partly due to a weak technical picture, although technicians agree the charts are not showing a long-term topping pattern or a head-and-shoulders top.
The index closed 186.42 lower at 4,458.25.
``I would characterize this as a normal corrective move,' said Nick Van Nice, president of tradeworld2000.com. ``We had the breakdown the second week of March and then the rebound last week. This could be a normal correction in a bull market.'
Van Nice said the declines could extend to a shelf of support at 4,200.00 before stalling out, although he would not be surprised if the market successfully rebounded from 4,400.00.
``There is a classical corrective pattern off the highs in a symmetrical A-B-C formation,' he said. ``I wouldn't be surprised if it were over right here and go up and resume the uptrend.'
Traders touted similar concerns about the Nasdaq 100 charts, although technicians again said a head-and-shoulders top was not yet evident.
The Nasdaq 100 fell 163.52, or 3.7 percent, to 4,250.40.
``If it breaks under 4,050.00, the bias will shift to the short side, but it still isn't a head-and-shoulders top,' said Hans Kashyap, president of Analytics Research Corporation.
``We have to rally all the way back to create that shoulder at 4,500.00 and then we have to break the neckline back at around 4,000.00. So a lot has to happen before we start looking for a head-and-shoulders top,' Kashyap said. |
