The NASDAQ Technical Analysis - A Specialist in Technical Analysis

 

For Nov, 05 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 Wednesday tells us to expect the market to begin the day flirting with initial levels of resistance and if the markets are capable of breaking above resistance we should expect momentum market increases as the markets make their way towards higher highs.  Treat resistance as inflection, however, and if the market is not capable of increasing beyond resistance and instead falls back below the lows that were set on Tuesday the environment could become much more bearish than it is now.  Immediately, our combined analysis is positive, immediately, our combined analysis suggests that the market is likely to head higher too, but the condition rests on support remaining intact.  Support was tested on Tuesday and thus far support levels have held, they will need to continue to hold for the positive environment that exists now to continue, but by rule, we are positive because support has held and we will stay that way unless it breaks for our longer term resistance level in the Dow Jones industrial average is tested.

Initial intraday trading parameters for the NASDAQ exist between4616 - 4652
If 4616 breaks lower expect 4596
If4652breaks higher expect 4677
Otherwise expect4616 - 4652 to hold

If 4616 remains in tact as initial support, expect the market to increase to 4652. This reflects a tight near term down channel. However, and in line with our combined analysis, if 4616 breaks lower instead expect the market to decline to 4596 before it stabilizes again.


NEAR Term Analysis

Our combined near-term analysis tells us that the markets are testing a near-term level of resistance, the Russell and the S&P 500 are testing intra channel resistance levels, but the Dow Jones industrial average is testing a relative high.  Still, resistance in all markets seems to be inflection and if the markets hold resistance we should expect a retracement back to support by rule.  However, if resistance levels break higher we are likely to see an upward sloping channel in the Dow Jones industrial average.

NEAR Term Support for the NASDAQ exists at 4616

NEAR Term Resistance for the NASDAQ exists at 4652

Nas_5_day


MID Term Analysis

Our combined midterm analysis tells us that the S&P 500 and NASDAQ have broken their upward sloping channels slightly, but they have maintained the neutral trend lines that act as support.  If the dow Jones industrial average and the Russell 2000 remain in upward sloping channels and if the markets continue higher from recent tests of support, mainly in the dow Jones industrial average and the Russell 2000, the S&P 500 and NASDAQ will likely develop midterm upward sloping channels that are slightly revised from what they were before.  Our combined midterm analysis is not bearish, but still generally positive as a result.

MID Term Support for the NASDAQ exists at 4576

MID Term Resistance for the NASDAQ exists at 4677

Nas_30_day


LONG Term Analysis

Our combined longer-term analysis has changed.  The reversal higher in the market last week caused the patterns to change and although the markets did not RE engage the upward sloping channels that began in the early part of 2013, those are still broken and officially dissolved, new upward sloping channels developed given the bounce back that occurred from the recent drubbing.  According to our combined longer-term analysis the market is now within striking distance of the new upward sloping resistance lines that exist in most markets.  According to our combined longer-term analysis we should expect the market to continue to increase and test upward sloping resistance so long as it remains above the recently broken neutral resistance lines in the S&P 500, Dow Jones industrial average, and NASDAQ.  These were all former highs, the market has broken above them slightly, and if the market remains above these levels a test of upward sloping resistance should be expected, but if the markets immediately break back below these now converted neutral support lines, which were once resistance, the upward sloping channels could possibly change into neutral ones.  Right now, our combined longer-term analysis points to higher levels and a test of upward sloping resistance before the market pulls back towards upward sloping support again.

LONG Term Support for the NASDAQ exists at 4299

LONG Term Resistance for the NASDAQ exists at 4593

Nas_1_year