Charting Money: No Nasdaq Pain, No Nasdaq Gain
05 Apr 12:00
By Stephen Cox, CMT
A Dow Jones Newswires Column
NEW YORK (Dow Jones)--The Nasdaq Composite index, now around 1780, stands to
lose 40 more points, roughly, before the long-term bulls know where they stand.
The index, despite a strong opening, has failed to test key resistance at
1806.88. The intraday high is 1803.21 and the index is now slightly lower on
the day.
For now, Nasdaq is still vulnerable to a test of 1734-area support. Perhaps
such a dip is the best thing that could happen to Nasdaq bulls, including me.
That development could mean a renewed bull move.
A long-time reader of this column called Thursday to point out that the
Nasdaq had closed out March at 1845.35, just above my 1843.61 technical level.
He asked if that development was "technically significant."
Indeed, it is.
It suggests that the Nasdaq has a shot at really important resistance at
1892.88, and then 2034.55, in the next couple of months. However, the March
close won't be confirmed on the monthly chart until the Nasdaq closes out April
above 1734. A lot can happen on a daily basis between here and there.
Note, also, that the March low of 1742.08 and the February close 1731.49
together form a chart gap that is now significant technical support. The point
is that the 1742.08 - 1731.49 band is my 1734-area support all over again.
And that's where we're headed.
The Non-Politics Of Oil
Some say crude oil futures have been moving up sharply because of the Mideast
"crisis." Evidently the crisis is ongoing. But crude's bull market may not be.
Nymex nearby crude oil on Thursday recorded a daily high of $28.45. The
contract's sharp reaction and settlement at $26.81 means that the $28.45 high
was a failure near target resistance at $28.69.
The contract is roughly 40 cents above key support at $26.20. If that support
is taken out, a dip to $24.68 - $23.20 is in the works.
To try out the new Charting Markets weekly technical newsletter go to
djnewswires.com
For more technical analysis see: Dow Jones Newswires, N/DJTA; Telerate, page
4073; Bloomberg, NI DJTA; and Reuters key word search "Charting Markets." CQG
key word search "Charting".
-By Stephen Cox, Dow Jones Newswires; 201-938-2064; stephen.cox@dowjones.com
(Stephen Cox, a chartered market technician, is chief technician for Dow
Jones Newswires.)
(Data by CSI, Commodity Research Bureau)
(END) DOW JONES NEWS 04-05-02
12:00 PM |
