Looking for a bottom
Posted by Danny on June 4, 2012
As we suggested last week, the markets are retesting their recent bottoms.
With a few more lunar Red Period days to go, we may be looking at a good buying opportunity here.
Let’s have a look at the current chart for the Nasdaq Index (click for larger image):
The Nasdaq has abandoned its steep uptrend channel, and is now sitting near a major support level at 2750, which was last October’s peak. If this level doesn’t hold, then we are likely to fall back to 2600.
But with a lunar Green Period coming up later this week, I expect some buying to come to the market at the current levels. That would probably put us in the “sideways summer” I have been talking about.
If the market falls below 2600, then it could become really ugly. But that scenario is not on the table for now.
Good luck, Danny