The NASDAQ Technical Analysis - A Specialist in Technical Analysis

 

For Nov, 21 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 Friday tells us to expect the market to begin the day with a bias to increase and it could increase solidly according to our combined analysis because the S&P 500 held midterm support on Thursday and it appears to be in the process of increasing towards 2062 respectively.  If that happens it will likely pull the other markets higher along with it and that could cause breaks of longer term resistance to become official.  The dow Jones industrial average closed Thursday's session slightly above its longer term resistance line, not enough to consider it a break of resistance, but if the market continues to move higher a break will be considered to have happened.  Friday will be important given the initial upward bias that our combined analysis suggests and could set the stage for a breakout as well.  Additionally, the Russell 2000 seems to have recovered and is no longer as bearish as it recently was.  Basically, our combined analysis for Friday tells us that a slight push higher would confirm breaks of longer term resistance and because the midterm chart pattern of the S&P 500 tells us that upside moves are indeed likely the probability of confirmed breaks of longer term resistance appears high.  It has not happened yet and we should not expect it to happen unless it does, but our combined analysis suggests that breakouts are much more possible than they might have appeared just recently.

Initial intraday trading parameters for the NASDAQ exist between4690 - 4709
If 4690 breaks lower expect 4656
If4709breaks higher expect 4780
Otherwise expect4690 - 4709 to hold

If 4690 remains in tact as initial support, expect the market to increase to 4709. This reflects a tight near term down channel. However, and in line with our combined analysis, if 4690 breaks lower instead expect the market to decline to 4656 before it stabilizes again.


NEAR Term Analysis

Our combined near-term analysis tells us that the market is likely to begin the day with a bias to increase as it opens on Friday and it suggests that we target near term neutral resistance accordingly.  If near term neutral resistance lines remain intact our near-term analysis will tell us to expect a progression down to neutral near-term support levels, but if neutral near-term resistance levels break higher the probability of an upward sloping near-term channel will be high.

NEAR Term Support for the NASDAQ exists at 4656

NEAR Term Resistance for the NASDAQ exists at 4690

Nas_5_day


MID Term Analysis

Our combined midterm analysis remains focused on the S&P 500.  The S&P 500 has held its midterm upward sloping support line and by doing so our combined midterm analysis maintains a generally positive bias.  So long as the S&P 500 continues to hold midterm upward sloping support that generally positive bias will continue until midterm upward sloping resistance lines are tested.  Treat support as inflection because it is closer than resistance, and if it holds expect an upward progression to continue, but if the S&P 500 breaks below 2046 and holds below that level expect a progression to 2024 and a neutral midterm pattern instead.

MID Term Support for the NASDAQ exists at 4656

MID Term Resistance for the NASDAQ exists at 4709

Nas_30_day


LONG Term Analysis

Our combined longer-term analysis tells us that longer-term upward sloping resistance lines are being tested and if upward sloping resistance remains intact our combined longer-term analysis will tell us to expect an oscillation back down towards longer term support levels again.  A decline from resistance to support translates into a decline of about 1200 points in the Dow Jones industrial average, and about 400 points in the NASDAQ, but in order for bearish longer-term signals to be maintained longer term resistance levels will need to hold.  The market was resting right on longer-term resistance when this observation was written, and although longer-term resistance levels were breaking higher slightly the week is not over, and not until this week is finished will we know if longer term resistance remained intact or broke higher.  Thus far, there are no clear signs of a breakout, but tests are clearly happening.

LONG Term Support for the NASDAQ exists at 4593

LONG Term Resistance for the NASDAQ exists at 4700

Nas_1_year