Since early July we've been forecasting the NASDAQ to move to $5300-$5400, when it was still at $4800. This week and three weeks ago it reached $5341 and $5343. Not too shabby a forecaste dare we say, as that's a 10+% gain in around 3 months without much headaches. That's what technical analyses does; it's accurate, unbiased, and based on facts. We don't do opinions at Intelligent Investing. But, all that is now water under the bridge, albeit solidifying Intelligent Investing's track record and adding credence to our next forecast. Now, what's next is all that matters in the stock market. The chart below shows the weekly candle stick chart of the NASDAQ ($COMPQ); and we can observe negative divergence on the Relative Strength Indicator (RSI5); an initial sell signal on our proprietary (A.I.) buy/sell Indicator (all 3 differently collored Technical Indicators -TIs- started to point down this week; see here for an indepth explanation); and the MACD and the OBV are also pointing down.
Hence, plenty of bearish signals on the weekly charts. However, OBV shows no negative divergence like it did in 2015 (red and green solid lines); suggesting no major top has been put in place as money is stil flowing into the market. price found support at the first level (red dotted horizontal line): $5200 and second horizontal support is at $5100, which is also where the 20week simple moving average (SMA) resides. Note that around $5200 is also the prior highs from Summer 2015; thus we may simple be experiencing a break out retest. In addition, price is still in the blue uptrend channel.
In summary; based on the TIs we can expect lower lows to probably the $5100 region, which is where we expect price to find support and become sufficiently oversold to be able to establish the next run up to $5800, with a pit stop at $5500.