The NASDAQ Technical Analysis - A Specialist in Technical Analysis

 

For Jul, 14 2014

(Individual Chart Analysis)

This is a no-frills analysis.  It is not designed to look good, it is designed to be effective. 


Summary of the Technical Analysis for the NASDAQ

(This takes into account the near term, mid term, and longer term charts)

Our combined analysis for Monday tells us that the market is likely to begin the day looking for direction and on a near term, midterm and longer term basis the market looks confused and looking for direction as well.  In fact, our combined midterm analysis and our combined longer-term analysis both tell us that the market is in a state of limbo, the chart patterns are not in parity, and the Russell 2000 is much weaker than the other markets.  However, if the markets show weakness in the coming week there could be corroborating support from multiple markets suggesting downward pressure, but for now the Russell 2000 is the weakest of the markets we follow, the Dow Jones industrial average is the strongest, and at least for now nothing seems likely to change in that regard.  Our combined analysis for Monday tells us to expect this to continue until such time as it does not, and because the trends for the markets are not in parity with one another we must watch them individually for trading direction as well.  To reiterate, our combined analysis does not show us that the markets are in parity and that is unusual, but when this happens our combined analysis tells us to look at the markets individually.

Initial intraday trading parameters for the NASDAQ exist between4396 - 4420
If 4396 breaks lower expect 4341
If4420breaks higher expect 4486
Otherwise expect4396 - 4420 to hold

If 4396 remains in tact as initial support, expect the market to increase to 4420. This reflects a tight near term down channel. However, and in line with our combined analysis, if 4396 breaks lower instead expect the market to decline to 4341 before it stabilizes again.


NEAR Term Analysis

Our combined near-term analysis tells us that the near-term downward sloping channels that were established late in the week last week were broken higher at the very end of the date on Friday, but a neutral resistance line exists almost immediately and therefore the market is caught in a relative state of limbo.  We should expect the market to begin the day looking for direction on Monday and the ability or the inability of the market to hold the neutral resistance line will likely govern market direction.  If neutral resistance breaks higher the market is likely to accelerate to the upside, but if neutral resistance holds and the market breaks back below the converted support line that was downward sloping resistance before it broke higher then momentum driven declines are much more likely.

NEAR Term Support for the NASDAQ exists at 4396

NEAR Term Resistance for the NASDAQ exists at 4423

Nas_5_day


MID Term Analysis

Our combined midterm analysis does not show us that these markets are in parity, because each market looks a little different than the other.  The Dow Jones industrial average is by far the strongest of the markets we follow and the Russell 2000 is the weakest.  However, each market has its own distinct channel at this time and they should be respected independently for at least the time being.

MID Term Support for the NASDAQ exists at 4420

MID Term Resistance for the NASDAQ exists at 4486

Nas_30_day


LONG Term Analysis

Our combined longer-term analysis shows us that the Russell 2000 developed a very bearish candle last week and the NASDAQ dipped back to its upward sloping resistance line, opening the door for a potentially bearish read from that market in the coming week.  The Dow Jones industrial average and S&P 500 are not as bearish as the Russell, and more would need to be done to cause a bearish read from the NASDAQ, so our combined longer-term analysis also appears to be in a state of limbo at this time.

LONG Term Support for the NASDAQ exists at 3996

LONG Term Resistance for the NASDAQ exists at 4462

Nas_1_year