A September to buy
Posted by Danny on September 2, 2013
Only a quick post for today.
Weakness in stock markets around the world has continued.
So, it looks like we are getting a weak lunar green period indeed.
Let’s have a look at the Nasdaq chart (click for larger image):
The Nasdaq has held up better than most other market indices. The 3575 level has been offering support since July. I think we will get some up days this week, but I expect the downside pressure the return sooner rather than later.
We can see there is little or no support below the 3575 level, so once that level gets broken the Nasdaq can drop to 3500 quite fast.
The Earl2 indicator is not showing any signs of bottoming yet, but by the end of the month we could get to an attractive setup. I think it will become a September to buy. But for now I continue to wait for clearer signs of a bottom.