James et al
All the technicians I know are adamant in saying that the Nasdaq has to test double bottom at 3250 or so, in order for it to move higher with force. Does that mean that anytime there has been a big dip in Nasdaq, (or Dow for that matter), has it always retested that bottom, and then moved higher. You could argue that when Nasdaq ran up from 3000 to 5000 three months ago, it did face some dips, albeit very light ones, from 4000 to 3700, etc. But it went straight up after that. Of course, you could also argue the fact that Nasdaq is here at this level, because the moves were not sustained.
On another note, analogous to contrarian indication of the put/call ratio, I have a hunch that the Nasdaq may NOT retest 3300, ONLY BECAUSE all the technicians that I have seen or heard say otherwise. |
