Gearing up for 2015
Posted by Danny on December 29, 2014
Most major stock indexes are ending the year at or near record highs. How much upside is left? Perhaps more than most of us think. More on that in the new year forecasts I will get out shortly.
Let’s have our weekly look at the Nasdaq (click image to enlarge it):
While it doesn’t look like we will get the down December that I was hinting at four weeks ago ( How about a down December? ), the indicated pattern has largely panned out. The Nasdaq did dip to 4600, but is recovering so fast that we are back to the highs already. What’s next?
Technically the Earl2 (orange) line appears to be forming a shallow bottom, while the faster Earl (blue line) is not yet topping out. The MoM indicator is near neutral and rising. I don’t think the current lunar red period will produce much downside, and if that is the case then the Nasdaq will probably climb to 4900 – 5000, where overhead resistance is likely. A drop below the December lows would invalidate this scenario.
Happy holidays to all our readers and stay tuned for a prosperous 2015,