The NASDAQ Technical Analysis - A Specialist in Technical Analysis

 

For Sep, 26 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 flirting with initial support and if support holds it tells us to expect a moderate bounce back to recently broken midterm support levels, which have now been converted into resistance.  The breaks of midterm support where very important to the channels, however, and declines have already begun in a more aggressive fashion after the break, and according to the midterm charts the markets could decline much more significantly because no additional support lines exist in the midterm patterns at this time.  Treat initial support as inflection and consider it a downside confirmation catalyst, but according to our combined analysis, if the market stays weak through Friday's close significantly lower market levels can come.

Initial intraday trading parameters for the NASDAQ exist between3996 - 4467
If 3996 breaks lower expect 3188
If4467breaks higher expect 4503
Otherwise expect3996 - 4467 to hold

If 3996 remains in tact as initial support, expect the market to increase to 4467. This reflects a tight near term down channel. However, and in line with our combined analysis, if 3996 breaks lower instead expect the market to decline to 3188 before it stabilizes again.


NEAR Term Analysis

Our combined near term analysis tells us to expect the Market to begin the day flirting with near term neutral support and it warns us that the Market is capable of breaking down aggressively if near term neutral support breaks.  However, support had not broken as the Market closed on Thursday, and so if support holds we should expect higher levels and tests of the near term resistance lines afterwards instead.  The catalyst is the market's ability or inability to hold initial support.

NEAR Term Support for the NASDAQ exists at 4467

NEAR Term Resistance for the NASDAQ exists at 4505

Nas_5_day


MID Term Analysis

Our combined midterm analysis tells us that the markets reversed down to midterm neutral support, and then support broke  The market is now under midterm neutral support and capable of falling aggressively so long as it remains under former support levels, which have now been converted into resistance.  Treat that converted resistance level as inflection for swing trades, but the catalyst was already actionable and the swing trades are already positioned.

MID Term Support for the NASDAQ exists at

MID Term Resistance for the NASDAQ exists at 4503

Nas_30_day


LONG Term Analysis

Our combined longer term analysis shows us that bearish candles may be forming.  If the market stays at these levels or gets weaker as Friday ends the weekly candles will also end bearish.

LONG Term Support for the NASDAQ exists at 3996

LONG Term Resistance for the NASDAQ exists at 4680

Nas_1_year