Nasdaq Recovers Technical Fumble - For Now

iSPYETF

Yesterday the Nasdaq Composite (^IXIC) fell below three long-term support levels.

This was a shot across the bow for bulls, but as yesterday’s Profit Radar Report put it:

“If this decline is corrective, it’s likely within the confines of a wave 4 Elliott Wave (EWT) correction. Waves 4 are unpredictable and often slice briefly below support before moving to new highs.”

Unlike the Nasdaq, the S&P 500 (^GSPC) stayed above important support.

The Nasdaq Composite chart shows an obvious support/resistance cluster right around 4,000. The Nasdaq is back above 4,000, but the problem is there there’s no real obvious target.

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How high can the Nasdaq and the Nasdaq QQQ ETF (QQQ) fly?

I always monitor the three main U.S. indexes, S&P 500, Dow Jones and Nasdaq (Nasdaq Composite and Nasdaq-100).

Every Index provides a different ‘piece of the puzzle’ in terms of the market’s whereabouts.

Right now, the S&P 500 offers short-term must hold support, and the Dow Jones pinpoints an obvious and solid target based on long-term chart analysis.

Stocks will probably run into some trouble once the S&P 500 support breaks or the Dow Jones target is reached. My guess is that it will be the Dow Jones target/resistance level that will break this ‘camel’s back’ … temporarily.

The exact Dow Jones target is revealed here:

Forget Dow 16,000 – Here’s the Real ‘Bubble Popper’

Regular market forecast updates (at least twice a week) and corresponding trade recommendations are provided via the Profit Radar Report. Simon Maierhofer is the publisher of the Profit Radar Report

Follow Simon on Twitter @ iSPYETF 

 



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