Stock rose strongly all week, a dramatic turnaround from last week’s losses.
As a result the recent lunar Red Period ended with a 28 point gain on the Nasdaq, and this is the strongest Red Period we have seen since early February, when the market was still in bullish mode.
While this doesn’t guarantee that the bottom is in, it is the first sign of strength that we have been talking about in recent weeks.
Now let’s see if the newly started lunar Green Period can build on this.
Here is the current chart for the Nasdaq index (click for larger image):
The Nasdaq has broken back above the 2600 level, which has been a major support level all year. This is a positive technical development, but it will be important for the market to confirm this breakout by holding above this level in the coming weeks and months. A fall-back would suggest a failed breakout and negate the signs of strength we just got.
If the bottom is in, then the current lunar Green Period should take us to 2700 in the coming weeks.
That would comfirm that the path of least resistance has turned up.
So it will be interesting weeks.
Good luck, Danny
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This entry was posted on September 19, 2011 at 10:44 am and is filed under Market Commentary.
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LunaticTrader
Outlook 19 September
Posted by Danny on September 19, 2011
Stock rose strongly all week, a dramatic turnaround from last week’s losses.
As a result the recent lunar Red Period ended with a 28 point gain on the Nasdaq, and this is the strongest Red Period we have seen since early February, when the market was still in bullish mode.
While this doesn’t guarantee that the bottom is in, it is the first sign of strength that we have been talking about in recent weeks.
Now let’s see if the newly started lunar Green Period can build on this.
Here is the current chart for the Nasdaq index (click for larger image):
The Nasdaq has broken back above the 2600 level, which has been a major support level all year. This is a positive technical development, but it will be important for the market to confirm this breakout by holding above this level in the coming weeks and months. A fall-back would suggest a failed breakout and negate the signs of strength we just got.
If the bottom is in, then the current lunar Green Period should take us to 2700 in the coming weeks.
That would comfirm that the path of least resistance has turned up.
So it will be interesting weeks.
Good luck, Danny
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This entry was posted on September 19, 2011 at 10:44 am and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.