The Indexes - Some Weekend comments.
I am going to comment specifically on the Nasdaq Weekly and Daily charts. For a change, I'm going to review these charts from top to bottom.
So first, the Weekly Nasdaq (sell signal)
www3.sympatico.ca
The CCI is coming out of the oversold zone and that's bullish - right?
Except that this will be the third time it has happened on this chart, and it didn't mean much the last two times.
So, not much to rely on there.
The RSI is rising.
This too has failed before on this chart, but it is bullish, and I think until it flattens, it should be viewed as bullish.
The last confirmed signal was a sell signal in early September, a year ago. It would have been a good time to consider closing long positions in Tech-related stocks.
The price is now (MA)1852 - (Price)1769 = (difference)83 points away from a bullish cross.
If we get that bullish cross,
and if it is confirmed by the +DI crossing above the -DI,
I will consider that quite bullish for techs.
We're not there, yet.
We should have some (weekly) support at the 1720 level, now.
The ADX is falling (suggesting a non-trending period when one should watch the non-trending oscillator, Stochastic) and the Stochastic is rising from the oversold zone. That's bullish.
MACD is not giving any guidance.
CMF looks unreliable, for now, though it is slightly positive.
Overall, the Nasdaq Weekly looks hopeful, but I wouldn't bet on it, just yet.
Now, the Nasdaq Daily (buy signal)
www3.sympatico.ca
In this case;
the CCI is up in the overbought zone and that's not good.
I find that the CCI coming down out of the overbought zone is a fairly reliable bearish signal.
It hasn't turned down yet, and it may continue up there for some time, but I'll be watching for it to cross below that 100 line. Certainly a time for caution.
the RSI looks like it is turning down.
This, as well, is bearish, and suggests a pullback may occur.
Price is nicely above the 20 day MA, and there should be decent support at about 1700.
The DMI is confirming the buy signal and looks pretty bullish.
The ADX line may be starting to rise, indicating the start of a trend. If so, the MACD will be the indicator to watch, and the MACD is bullish, with rising momentum lines just crossing the zero and a rising histogram.
Stochastic, on the other hand, like it's sisters the CCI and RSI, is up in the overbought zone, and suggests caution.
CMF looks great, for now.
There's nothing in the Daily chart that will make me sell my tech positions in the morning, but I'll be watching closely, hoping this is the start of a bullish uptrend, and if not, if the ADX starts falling farther (bringing the Stochastic into play) it'll be time to consider exiting some positions.
Cush |
