DOW and Nasdaq 100

[Sparky]

Looking at the two indexes, I'm starting to see some interesting positives which I thought I would pass on.

DOW
Short term head and shoulders patern, useually a signal of a trend reversal.
3 day price close above 10 and 20 MA
RSI, breakout
MACD, higher high from looking as if it was turning negative.
Closeing in on resistance of mid May current downtrend, a close above 10658, possible breakout.

Nasdaq 100
Bounce of support at 1659 and 1686.
Head and shoulders patern, short term
Both RSI and Velocity indicators at possible break out stage.
MACD, higher high from looking as if turning negative.
Closing in on resistance of mid May current downtrend, a close above 1755, possible breakout.
Also, could test the 100 day MA at 1794, this is an important MA for the Nadaq as it has offered support and resistance to the index.The price has not closed above the 100 day on successive days since Aug 2000.

I am long on the Nasdaq September futures and am waiting to possibly trade into the Dow.
Not recommended for the faint hearted!

 

[darth trader]

Yes I noticed this too Sparky.

Moreover Greenspan is giving his bi-annual testimony today and Intel beat expectations in their after hours announcement last night.

In spite of what the bears say I'm still expecting a rally.

 

[Sparky]

Things are bubbling away nicely now, especially on the Nasdaq 100.

I think that we will see a nice run up shortly, an upday close tomorrow could be the start as everyone will be acting on the short term Head and shoulders pattern.Along with several break outs of key indicators, could be a very interesting time..

Some good stock chart patterns in the U.S. at the moment, well worth looking at your US watchlists!

 

[Sparky]

Nasdaq 100, looking good, performed Head and shoulders pattern - short term price break out, aswell as RSI, Velocity and MACD indicators all broken above resistance levels.

Next step for a continued rally, will be breaking above and holding above the 100 day MA, which is at 1756, this figure is also around a price resistance level - 1760. Therefore any move above would be very encouraging.

 

[Sparky]

Nasdaq 100.
Resistance held, price pull back to support level.
Higher low made on pull back and pottential double bottom patten could be made, if this is so then expect run up to test resistance at around 1750 again.
Short term downward trend has now been broken and we are in a sideways channel, low 1600's to 1750, any break out above or below would be significant.
I feel that 1750 will be tested shortly.

Dow.
Inportant resistance levels to look out for on the upside are 10458 and 10500, looking as if these levels will be tested shortly, if broken a strong move up can be expected.

 

[Sparky]

Dow.
Interesting points to note, positive directional change on MACD and Velocity indicators (daily chart).This is an unusual move in recent days.
Price formed S/Term double bottom, in an ever decreasing trading band, with support at 10317. Although the index is at resistance level now a move above today would be encouraging.

 

[Sparky]

Dow.

A close today above 10278, would indicate S/T head and shoulders patten leading to an upward move to around first reistance level of 10304. Looking at the recent chart patten a double bottom has been made in the sideways channel since july, so we could be looking at a head and shoulders within the longer double bottom move, this could indicate a stronger move up from this position. A move up to 10343 and above would show a S/T breakout of current downtrend.
Support levels are at 10166 and then 9971.


Nasdaq 100

This index has hit a major support level at 1481 and bounced off once, it is again testing this support today. We need to see a close today above 1513 to indicate what I think we be the start of a strong rally up. The price line would have performed a minor double bottom patten, but importantly the support would have remained in place.