iBankCoin
Joined Nov 11, 2007
1,458 Blog Posts

The Daily Breakdown: The Nasdaq Composite Index

I’m sure many readers will be thrilled when the Nasdaq no longer qualifies for The Daily Breakdown. With Wednesday’s close below the 200 day moving average, unfortunately this breakdown cannot be ignored.

Do not mistake this post as a predictor of what is to come. Instead, use it to mark exactly where things stand so that it will be clear when something different starts to happen.

The blue down trend line is lying almost directly over top of the 9 day simple moving average. Until the index closes and holds above this line, nothing changes. As I’m sure the bulls are beginning to get wary of failed bounces, a conservative strategy could be to not even consider bounce plays until the Nasdaq gets above this most recent downtrend line.

When a bounce occurs, I expect that resistance will be at whole numbers, namely at 2600 and 2700.

 One final note. I do not know if in reality things are as bad as the market is perceiving them to be. I do know that as Fly has said, the most abundant opportunities present themselves at the bleakest of times.

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5 comments

  1. JakeGint

    Woods, I don’t think people are even aware of how “bleak” the market is looking right now. When your workmates start complaining, start looking for bottoming action.

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  2. The Fly

    Danny just blew you up, alongside several members of his immediate family.

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  3. JakeGint

    Huh?

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  4. Danny

    yeah I’m pretty sure they read this site too, adding to my shittalking zeal. I wasn’t entirely calling shed out, it just there is no one else to say. And it is true. But Bilderberg? Yeah right, I want to live to see 23 with both kneecaps intact

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