The NASDAQ Technical Analysis - A Specialist in Technical Analysis

 

For Sep, 03 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 looking for direction but it also should have a slight bias to increase thereafter as it makes its way back towards established resistance levels.  The markets appear to be in neutral near-term patterns, generally in limbo, and the sideways action is likely to continue if resistance lines remain intact.  The same is true if the neutral midterm support lines in the triangle patterns of the S&P 500 and Dow Jones industrial average also remain intact.  The Dow threatened to break below this level on Tuesday; the S&P 500 did not come as close, but thus far the neutral support line in the midterm chart of the Dow Jones industrial average has not broken.  If the Dow Jones industrial average and S&P 500 break below their midterm neutral support lines it would paint a very bearish picture overall.  It would not be surprising to see this happen because the Dow Jones industrial average remains under a neutral longer-term resistance line as well, but our combined analysis is not suggesting any immediate aggressive market moves either way.  Instead, our combined analysis tells us that the markets may remain in limbo.  Treat resistance as inflection, treat support as inflection, and use the rules we incorporate to guide your direction.

Initial intraday trading parameters for the NASDAQ exist between4582 - 4608
If 4582 breaks lower expect 4547
If4608breaks higher expect 4625
Otherwise expect4582 - 4608 to hold

If 4582 remains in tact as initial support, expect the market to increase to 4608. This reflects a tight near term down channel. However, and in line with our combined analysis, if 4582 breaks lower instead expect the market to decline to 4547 before it stabilizes again.


NEAR Term Analysis

Our combined near-term analysis tells us that the markets are in neutral near-term patterns for the most part, with the exception of the NASDAQ.  Still, according to our combined near-term analysis the markets have tested support levels most recently and as a result we should expect the markets to continue to increase towards near-term resistance levels.  The market already seemed to be in the process of doing this, but support is inflection.  If support remains intact expect resistance by rule, but if support breaks expect the existing neutral channels to change and potentially downward sloping channels could develop.

NEAR Term Support for the NASDAQ exists at 4582

NEAR Term Resistance for the NASDAQ exists at 4608

Nas_5_day


MID Term Analysis

Our combined midterm analysis has not changed much after Tuesday's session and the triangle patterns in the S&P 500 and the Dow Jones industrial average still exist.  Eventually these will change, one way or the other, but the Dow Jones industrial average came very close to breaking the neutral support line, the floor of its triangle patterns, on Tuesday.  Thus far that floor is holding and so long as it does we should expect the markets to remain in limbo.  The support line of the Dow Jones industrial average is important as a result and it, along with the support line of the S&P 500, could influence market action in the days ahead.  So far support was tested and it held.

MID Term Support for the NASDAQ exists at 4547

MID Term Resistance for the NASDAQ exists at 4613

Nas_30_day


LONG Term Analysis

Our combined longer-term analysis is not bearish, but if the markets turn down from these levels double tops will be established.  That means, if the markets end this coming week lower it could mark a double top and momentum declines can follow.  Last week I outlined how serious that could be, so please review the newsletter I wrote on August 29, Sunday, and use that summary for this week as well.  Depending on how this week ends, our longer term chart patterns could become quite bearish, otherwise it is status quo pointing to the upward resistance lines.

LONG Term Support for the NASDAQ exists at 3996

LONG Term Resistance for the NASDAQ exists at 4625

Nas_1_year