Don’t Give Up on the Nasdaq Yet
- Posted by Greg Harmon
- on April 18th, 2013
The Nasdaq, represented by the $QQQ, has seen as the laggard on the market rise through March. Rightly so as the Russell 2000 barreled ahead and the S&P 500 was close behind. The QQQ was the slow plodder higher. From the daily chart below you can see the rising channel that began at the November lows. With Wednesday’s action, touching the bottom rail and then retreating back up to the
rising 50 day Simple Moving Average (SMA) it is not tome yet to throw in the towel on a continued move higher. The weekly chart gives more reasons to hold. The RSI is trending higher, the MACD is trending higher on the signal line and the price is trending higher and above the SMA’s. Additionally it is working on an ABCD pattern that completes at 71.85 or 74.70 if it turns out to be a 1.27AB extension. I like the latter
as that is also very close to the 3-box reversal Point and Figure price objective of 76. If price does reverse and negate these signals I will get out. But it is not time yet.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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