Nasdaq weekly update - Nasdaq weekly update

Nasdaq weekly update


Taking a look at the nasdaq chart on the weekly timeframe we can see that for the last few weeks, things are getting tired. The nasdaq rallied up to the previous highs in September 2012 and had trouble to get above those levels. Now the nasdaq seems to be sinking a bit.

The below indicators seems to be suggesting, there is certain headwinds that are possibly coming for the markets. The stochastics are turning and are almost on a sell signal. So it seems the market right now has lost its spark, and we are getting a few warning shots 'across the bow' so to speak.

Nasdaq weekly chart

The USD dollar chart (or the inverse trade UUP) broke out of a falling resistance line in FEB 2013, and since then has been on a steady climb upwards. This significant strength, could be another warning sign.

USD chart

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The Air Down There!

How is the air down there? Well I must say that the S&P did have a great start to the day, but then trust Ben Bernanke to come through and wreck that. The man got up shaking, his lips quivered, and we all know he was lying through his teeth, but this moron caused the S&P to sell off and wipe out its globex gains by the close. LOL. So a nothing nothing day really!

Looking at the chart, we have still broken the rising channel, and we seem to be forming a small consolidation pattern down there. Is this just a bear trap where we trap traders short and then shoot higher to the moon? or is this a bearish flag (a pattern that normally precedes lower prices) like some traders are seeing.

This market requires a bit of patience, but my thoughts are that even though we have broken the upwards channel the market is still holding its head above water for now. A break below the smaller line on the chart = bearish! But if the buyers take charge and take us back into that bigger rising channel, that will be very very bullish. But for now, we just need to be patience and wait. 

USD

Here we are on the USD. We have been talking about it being all about the dollar recently. The QE3 program is not good for the USD, but no matter what the news brings we must keep watching the charts. Right now the USD is at a make or break area. It is touching the falling resistance line that goes all the way back to JULY 2012. This is a very important area and the next few days are also important as a break will be bad for the US indicies, but hitting this line and then seeing bears come back will actually be very bullish for the indicies. But it is all about the USD right, so we need to be patient and watch as the week is young. :-D

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Line In The Sand - The USD and line in the sand

Line In The Sand - The USD and line in the sand

Our VIP ELITE GROUP have been going gangbusters lately. I did want to post something in the FREE section here.

What I did notice today is that the US Dollar is that is is coming up to the line in the sand here. Currently trading at 79.82 the real line in the sand (or falling resistance line points) is about the $80 level. If it can break through this level the S&P is NOT going to like that, and it will create more selling. However, if the USD fails to get back past this $80 level, then the S&P which has been Bullish lately will find even more support and we will shoot higher.

I am also here, to remind you that the QE3 buying starts on friday, so it is my opinion that things will be volatile around then and you will have to be on your toe. But for now, watch that USD chart...its quite telling. 

Happy Trading :-)

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