Flash News: Noting Relative Strength in Adobe

• Posted by Greg Harmon
• on December 1st, 2014

Its Monday so time for a crisis. Today’s flavor is that the Nasdaq 100 is down over 1%. Oh my! The market does not go up every day in a straight line. Even in a bull market. There are retracements and retrenching along the way. When these happen it is useful to take note of what set ups you were watching that are not pulling back with the market. One of these on my list is Adobe Systems, $ADBE. Yes that program that lets you read and write .pdf’s and sends you annoying updates for Adobe Flash Player that you have to restart your machine to use, and always at teh most inopportune time. But take a look.

This chart pulled back with the broad market in October, and then rebounded. Starting the week it was right back at resistance from June, July and September. A triple or quadruple top. But with the Nasdaq down 1% it is flat on the day, holding at that top. A break through that resistance has a Measured Move higher to 83.30 for starters. The momentum indicators remain supportive of more upside. The RSI is rising and bullish while the MACD crossed up and continues higher. Even the Bollinger bands are opening up for a move higher. Print a .pdf of this one and be ready to hop on board when it breaks above 74.

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