The NASDAQ Technical Analysis - A Specialist in Technical Analysis

 

For Sep, 15 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 to expect the market to begin the day with a bias to decline and it tells us to expect tests of initial support levels afterwards.  Additionally, the markets began to break down officially on Friday, so a progression to midterm neutral support is likely as well.  Treat initial support as inflection and if initial support remains intact our combined analysis tells us to expect an oscillation back to resistance before a continued progression two midterm support occurs, but if initial support breaks lower a more immediate decline to neutral midterm support, secondary support in our combined data tables for the S&P 500, Dow Jones industrial average, Russell 2000, and NASDAQ, should be expected.  In addition, our longer term charts show us that confirming red candles engulfed last week's DOJI pattern in the S&P 500 and the Dow Jones industrial average and the Dow Jones industrial average may have established a double top.  Our combined longer-term analysis is bearish as a result and it will continue to be bearish unless the Dow Jones industrial average breaks above 17157.  If the market remains below this level the first stop according to our combined analysis, on a longer term basis, will be 16341, but lower levels would also be possible thereafter.  Immediately, our combined analysis tells us to respect initial support as an immediate inflection level and the outlook from our longer term charts, although extremely bearish, need not be felt immediately.

Initial intraday trading parameters for the NASDAQ exist between4544 - 4599
If 4544 breaks lower expect 4481
If4599breaks higher expect 4626
Otherwise expect4544 - 4599 to hold

If 4544 remains in tact as initial support, expect the market to increase to 4599. This reflects a tight near term down channel. However, and in line with our combined analysis, if 4544 breaks lower instead expect the market to decline to 4481 before it stabilizes again.


NEAR Term Analysis

Our combined near-term analysis tells us that the market is progressing from resistance towards support within near-term channels, but the S&P 500 and Dow Jones industrial average are in downward sloping near-term patterns, while the NASDAQ and the Russell 2000 are in neutral patterns.  Still, our combined near-term analysis tells us to expect the market to begin the day with a bias to decline as it opens on Monday and a test of near-term support levels is likely.  Treat support as inflection, expect a progression back towards near-term resistance if support holds, but be prepared for momentum driven declines if support breaks because there are no additional near-term support levels in these charts.

NEAR Term Support for the NASDAQ exists at 4546

NEAR Term Resistance for the NASDAQ exists at 4593

Nas_5_day


MID Term Analysis

Our combined midterm analysis tells us that the markets are breaking, with the exception of the NASDAQ.  The NASDAQ is more resilient than the other markets, but the other markets when combined suggest lower levels so according to our combined midterm analysis the market is likely to progress lower and test the neutral support lines, the lowest support lines, in our midterm chart patterns for the S&P 500, Dow Jones industrial average, and Russell 2000.  This assumes that the intra channel resistance lines remain intact, and thus far they are holding, but if they break higher we should expect a modest increase instead.

MID Term Support for the NASDAQ exists at 4544

MID Term Resistance for the NASDAQ exists at 4599

Nas_30_day


LONG Term Analysis

Our combined longer-term analysis tells us to expect the market to trend lower because the engulfing red candles in the S&P 500 and especially in the Dow Jones industrial average suggest that the market is capable of turning down aggressively.  With specific regard to the Dow Jones industrial average, if the market does continue to turn down a double top will have been established and momentum driven declines will be likely with the first stop at 16341.  Our combined longer-term analysis points to lower levels and the DOJI patterns that existed last week have been negatively engulfed. In order for this bearish indicator to change the Dow Jones industrial average would need to move above 17157 and hold.

LONG Term Support for the NASDAQ exists at 3996

LONG Term Resistance for the NASDAQ exists at 4626

Nas_1_year