Quick Market Analysis, Bull Opportunity with Higher Lows
With the market finish last week being oversold, it appears the indices have set up a “higher lows” pattern. This gives bulls the opportunity to push the market back up, and in doing so, signaling possibly a new long term trend.
Two charts below, one of the NASDAQ and one of the S&P 500.
NASDAQ Composite
Resistance on the NASDAQ stands at 2318, then 2360 (start of gap range), and 2420. Today could see the break of 2318. I am a buyer of the QLD with a heavy accumulation break above 2360 this week.
S&P 500
Support and resistance isn’t as clear cut on the S&P, nonetheless is there. A break above 1352 is a good start to a new uptrend. Watch out though, last Thursday’s lows of 1316.75 cannot be undercut for this, “higher lows” pattern to be relevant.
If the market does move up, look for strong industry groups to lead the way. One great place to start looking, Fertilizer stocks.
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Nice post, always enjoy ones on market timing. There was an analyst on CNBC saying that 1325 on the S&P may the support level. As I’m bullish (well for the most part), I’ve taken it into consideration on timing. I wish I remembered the analyst’s name, but the charts & techical analysys per above…..well i’m leaning back into bull terrority as well. Just watching my screens today, I had to give up one of my shorts (not short financials, but one that was making $). Usually bad news ….good for the bears…but AIG didn’t impact the market as much as financials, hence I was disappointed with my short, but really surprise that the DOW didn’t come down hard -200 or so.
It’s hard to call it bear or bull (in my humble opinion right now), but as an investor, I’m going long on some of my positions, even if they take 6 months to pan out. I myself am looking for returns over months, not days or weeks, and still taking a forward looking stance.
It’s really hard to call a bottom, but year over year, if you are long term, it looks like a good time to invest for me.
In my humble opinion,
Ray
p.s. I am long POT (*per above on fertilizer stocks*)
however, I would think anything AG is a safe way to play. Currently looking at the rails of course (someone has to transport this stuff!).
It sounds like it’s sleeting, but every time I turn on the outside light & look, nothings happening.
[...] Is there enough steam to push the NASDAQ above 2420 to claim higher highs? [...]