From looking at the Compx chart.....
I found one thing that stood out. Using logarithmic scaling on a 3 to 6 month chart. I have 2 primary trendlines that form somewhat of a triangle. The up trendline connects the lows from 4/4 and 6/20. The down line connects the highs from 5/22, 6/7, and 6/29. Basically, the Nas dropped below the up line last week and made a valid attempt to get back above it. The wick on Friday's candle actually penetrated it, but it retreated and closed below it.
I notice the 20 and 50 2 SD bollinger bands supported the Nas last week. This could be a good sign for the Bulls. During the Feb,March slide earlier this year the B bands were useless. Also, 2100 should prove to be formidable resistance, which makes for an interesting week.
My overall view of the Nas direction is leaning towards the bearish stance. I feel the 2 biggest forces are the obviously horrible fundamentals and the fact that the Fed and many big houses seem to be supporting the market by pumping it up. We will see what wins out. Either way I'll be trying my best to ride the wave, whichever way it plays out.
My post of the week award goes to DrB for his excellent buys at the height of the meltdown. A gutsy and profitable trade, that actually due to the oversold nature of the market was not as risky as it seemed at the time. Still it took guts, LOL. |
