Nasdaq Comp Gaps and Reversals Thread

tradesmart

Experienced member
1,286 22
Well, as mentioned above, the hopes of the bears have been realised and the Naz is testing support at 1850 ish yet again – showing signs of yet another short term bottom at this level with PD developing on RSI, but with the index struggling to hold onto the 100ema in this timeframe, we might be forgiven for suspecting that it is only a matter of time before current support levels give way with serious downside resulting……….
 

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ChartMan

Legendary member
5,580 46
ooo you Bear you! I see it as 5 waves failing to push down so we go up....Not that I know anything about the Naz.
 

tradesmart

Experienced member
1,286 22
CM - I'm trying to coax Naz into telling us about the Naz - then we'll know where it's really going......... :cheesy:
 

tradesmart

Experienced member
1,286 22
With PD on RSI, a bull flag, and a gap above to be filled; the Naz could be ready to work off short term oversold conditions with a ‘green’ day…….. :cool:
 

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tradesmart

Experienced member
1,286 22
‘Green’ on hold while the Naz homes in on the lower trendline in the bigger picture….
 

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tradesmart

Experienced member
1,286 22
Possibly a tad too early to speculate with a bullish tone, but are we witnessing another island reversal in the making……?!

All bets are off if oil hits $50/barrel………. :confused:

(but good numbers from CSCO after the bell could add to the momentum north…..!)
 

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tradesmart

Experienced member
1,286 22
Well, all ‘island reversal’ bets are off for now as the black stuff heads north of $45…….and the Naz heads south……….and a major trendline break……..very bearish…..

Less than scintillating numbers from HP/ CSCO added to the downdraught.....

Quite a few S/R bands below – take your pick…..!

1735 looks quite strong, but so does 1689 ish…!....bears rool for now (‘til the next ‘handbrake turn’……… ;) )
 

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tradesmart

Experienced member
1,286 22
As mentioned above, we've had the almost predictable "handbrake turn" and the bulls have been let out for a short gambol (gamble......?!)

Little surprise today that the indices hit their highs in early trading, and then fell back as oil opened and crept back over $46.50/b (again……..!)

The Naz hovering over a big gap that could be filled today doesn’t help too much imho….. :confused:
 

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tradesmart

Experienced member
1,286 22
The gap mentioned above was very briefly filled, and having done so, the Naz took off bigtime! The setup on the 60min chart possibly still qualifies as an Island Reversal (similar to the one that kicked-off the thread in May..!) and has certainly produced a strong burst of upside…..

However, we have a rising wedge pattern that can signal an imminent retracement, so maybe the bears are ready on the sidelines……

I tend to watch the Naz when trading other indices as very often the intraday patterns are clearer and the Naz often leads the move…… ;)
 

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tradesmart

Experienced member
1,286 22
Interesting comment and great website referred to above by Trade_Ideas – well worth a look…….

The rising wedge triangle from the chart posted last Thursday has yielded a good retracement as noted as very likely then, with ND on RSI showing the way down as it reliably does…

(but rising wedge triangles can precede an upside move when the market is rallying off of a bottom, so the ‘market phase' needs to be taken into account' before taking a position on this pattern)

The Naz is still above the 100ema as shown on the 60min chart, so despite todays downside, the bulls are still in charge imho……
 

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tradesmart

Experienced member
1,286 22
A very bullish performance from the Naz recently, having broken out north from the 6day long triangle of indecision – itself riddled with gaps and reversals…..

But now after an over 50point rise in 3 sessions, we are in the 1918 area, which has been a key S/R level previously – ND is prevalent on RSI and there is a gap to be filled just below 1900…..I doubt that it will be ignored for long………
 

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tradesmart

Experienced member
1,286 22
Still holding onto most of it’s recent gains, but short term the Naz looks kinda bearish to me……..hovering over that gap crying out to be filled…….major support some way below at 1875 ish……

Tech major Oracle reporting after the bell may well influence tomorrow’s performance ………

Edit re: Oracle - "License revenue came in at $563 billion, meeting the low end of the range expected by analysts"

low end of the range.....what, not perfection....!?......that could cause problems....... ;)
 

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tradesmart

Experienced member
1,286 22
Well, the gap from Monday mentioned in the post above got filled yesterday when the Naz joined the other indices in a minor tanking, but that minor tanking caused an opening gap which just had to be addressed (filled......!) today – so the Naz has done a ‘return trip’ to do the job, then a swift return to a southerly direction signalled by ND on RSI…

Sometimes the Naz fills gaps immediately, and other times it might leave it several days to return…….unfilled gaps might signal an ‘Island reversal’ – a powerful trend change signal……………divergence on RSI almost always signals changes of direction, whether in an intraday or in a longer timeframe….

Signals from the Nasdaq Composite charts can invariably be applied to and traded via the QQQ’s Nasdaq tracker or NDX Nasdaq 100…

Very often reversals on the Naz happen ahead of the other indices and can act as an ‘early warning’

All imho of course…… ;)

Edit – the 60min chart shows that the index is running north in a clear parallel uptrend channel and is currently creating a triangle under one of the major trendlines linking the highs of the year……….breakout due soon……?
 

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