From Yahoo on Nasdaq chart:
biz.yahoo.com
Part of it as follows:
INVERTED HEAD & SHOULDERS
One particularly very bullish technical formation that the chartgazers say may be developing on the Nasdaq chart is a so-called ``inverted head and shoulders''.
The ``head'' is the lows of September at about 1,387, left ''shoulder'' is the April 2001 low at 1,619 and the right ''shoulder'' could potentially be the February 2002 low at 1,696, if that level holds.
``It's too early to say,'' BenSignor adds. ``If you believe that those lows have longer-term implications then the lows two weeks ago become more significant short-term lows and possibly form the right hand in an inverted head and shoulders.''
On the downside, the concern would be going lower than the 1,696 low set in February. This could open the way for a retest
of the September 21 lows, at 1,387.06 on Nasdaq, 8,062.34 on the Dow and 944.75 on the Standard & Poor's 500 (^SPX - news).
Others lean even more toward the bearish case.
Bernie Schaeffer, a veteran options trader and chairman of Schaeffer Investment Research, says Nasdaq needs a clean break of its 40-week moving average which comes in at about 1,900, followed by a breach of the 2,100-point area.
But as long as Nasdaq languishes below its 40-month moving average, in the 2,650-point area, Schaeffer says he will not even consider the possibility that the bear is giving way to a new bull. Schaeffer uses the gauge to plot long-term trends.
``The ultimate proof would be around the 2,600 mark. It has the unique characteristic of being double the low and about half of the high, so it has a lot of technical significance,'' he said. ``Also, the 40-month on Nasdaq is at 2,600 to 2,700.'' |
