Nasdaq Composite

[saffeysite1]

The NAz held support, just closing near the 10 day MA trendline with a Hammer.  Also the down days have been on lower volume. 

Dec. 1st is historically a bulls day.  We'll see, so far so good.

[calven]

COMPX retesting the 1-4 resistance line for a second time...

[guitarman]

Very interesting stuff guys.
I have almost finished reading a book by John Mauldin (Bullesye Investing).
He's a Manager of Fund Managers and puts out a free e-mail newsletter ( www.frontlinethoughts.com ).
Wordy, but worth the time.
He forsees the NASDAQ falling below the DOW in the future.
You might be seeing the beginning of this.
I've got a couple of puts on QQQQ just in case.

Good luck!
Gman

[calven]

The COMPX is currently in a momentum upchannel. It is also continually banking into the 1-4 WW resistance line.  If you look up a few posts i have drawn it out. When the momentum upchannel support line is broken the COMPX will see a nice correction...

Personally energy as a whole is bottoming. Oil will bottom between 50-55 and both natural gas and unleaded gas have broken short term downtrends. Oil is back folks....

When energy bottoms (as determined by big time money managers) profit taking will occur in the COMPX...

[calven]

COMPX just recently broke its momentum upchannel today...

[calven]

12/08/05

Mini WW developing on top?

BTW SVA is NOT a WW...

[calven]

Hey folks I fixed the ww diagrams so they show the trend leading into the ww pattern!

sorry for the confusion.

cal 

[kslifka]

After breaking above the the trendline, the Nasdaq fell back into the ascending channel.    It's possible that the Nasdaq is headed to the bottom trendline.

[SmartWrasse]

I thought the headlines were good news last week, but apparently not.  It is almost as if the traders are planning to get a head start closing out positions for the expected /impending bear market on everyones mind. 

[kslifka]

Well, the Santa Claus rally continues, but I would recomend that we don't get too greed here.  Charts are hanging on, but volume will be low the next week.  Be careful of high flyers here.  Here are my latest chart updates.

[calven]

WOW! Near perfect hit of the 1-4 line!

[calven]

COMPX update...

Today's candle filled the gap, now it's tracking back down towards the 1-4 support line.

[calven]

Update

[calven]

Time for a COMPX update - things are getting ugly... 

[eliteG]

-The Nasdaq managed to make a strong intra-day reverse.. bouncing off of a potential triangle bottom ~ 2100 on increasing volume.  This is the first time since the drop that the NASDAQ has reacted positively to a support trendline.  When this happens it is possible to see a nice rally.. potential target is the 200ma (~2230).  Support is near @ 2100 and 2065... close support adds to rally possibility.

How to use this analysis? 

1st thing I want to do is tighten stops.  The reason being if you think you have found a bottom.. it needs to hold.. and so does the recent lows of your stocks.  This guards against a powerful breakdown which would prove your analysis incorrect.. or that you are simply not holding the stocks the market favors(and you want to be knocked out of these so you have room for the right ones)

2nd thing I want to do is see which stocks are reacting positively to this market move today.. and if they are not extended, it is time to buy.

I have a bullish bias now on the markets... because:

1.  a strong reaction to support on an intraday reverse with volume
2.  support is nearby.. and if broken I will be proven wrong with minimal damage.

-Trade it good 

Here is the zoomed in chart: