Chairman:
Thanks for the market analysis link...
A look at the 2 year NDX chart shows a trading range between 3000 and 4100 since May...
bigcharts.com
The longer we have lateral moves like this after huge run-ups the better... It builds a strong base from which further moves can be launched while providing tested support during the base building process... Any serious break of the 3000 support area on a closing basis would be cause for concern... For now, it doesn't look like we'll break that support area... It was successfully tested 3 times in October, in the midst of Mutual Fund selling and much gloom and doom talk... Now, as we step into the sunlight of November, we should see a sustained up move in the weeks to come...
The Dow made a ytd intraday double bottom culminating this month...
bigcharts.com
Aside from that single line probe on exhaustion selling to the 9600 area, the heart of the second bottom is above the 10,000 area, and is higher than the first bottom in March where there were 5 probes to the 9600 area... This tells me that the movements to come should be on the upside...
Of course, we have Oil, the Middle East, the Elections, and something from left field that could influence the markets in either direction... But, technically, things are looking better...
Jim |
