Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nasdaq Trending Higher

By Christopher Grosvenor, CMTStock MarketsSep 14, 2012 08:00AM ET
www.investing.com/analysis/nasdaq-trending-higher-136449
Nasdaq Trending Higher
By Christopher Grosvenor, CMT   |  Sep 14, 2012 08:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Peak-and-Trough Progression
The Nasdaq-100 formed an evening star candlestick pattern Monday after making a new minor high on last week's Thursday. The evening star pattern should have bearish implications for the next few days. The previous minor low is now at $2,750.
NDX
NDX


Bonds & Crude Intraday
Bonds formed an intraday triple top and confirmed the triple top with a breakout to the downside. The minimum implied measured move is $150. Further, bonds made a lower low today, continuing the down trend.

Crude oil was declining, lower lows and lower highs, and is trading near $100. Crude was in the process of forming a bottom. Confirmation of the bottom occurred. The crude oil bottom was an inverse head & shoulders pattern. The minimum implied measured move is $102.

Trendlines & Moving Average
As of writing, the market is still in an intermediate up-trend: The Nasdaq-100 is trading above the rising 50-day simple moving average.

Momentum
The 12-day rate of change indicator is declining and above equilibrium: That suggests the price is above where it was 12 days ago and the difference is shrinking. Further, the 12-day ROC is forming negative divergences. The 24-day rate of change indicator is flattening and above equilibrium. The 14-day RSI is suggesting the market is bullish. The 14-day slow stochastic indicator is declining after reaching overbought and recently formed a bullish crossover. The 14-day ADX is increasing which suggests the market is trending. The market is above the parabolic SAR: a sign the minor trend is towards higher prices.

Dow Jones industrial average & S&P 500
Both averages are confirming the bullish sentiment.

Energy versus Financials
The energy firms have begun to outperform, the ratio is above the rising 50-day simple moving average, the financial firms: Markets are beginning to price in inflation. Typically, energy outperforms towards the end of the cycle.
Chart_1
Chart_1

Energy versus Utilities
Currently, energy is outperforming the utilities: Markets are pricing in inflation. That said, overall the utilities are outperforming energy as deflationary risks linger.
Chart_2
Chart_2

Stop Loss Level
The protective stop loss level is $2,700: That level represents the worst case loss level and trades may be exited prior to the market reaching that level.

Conclusion: Bullish, caution warranted.

www.proproptrading.com will be live soon. Subscribers will get research notes e-mailed to them with the purchase of an annual membership of $10-year. Research notes will combine the technical and valuation perspectives, initially.

Disclaimer: This article is not meant to establish or continue an investment advisory relationship. Before investing, readers should consult their financial advisor. Christopher Grosvenor does not know your financial situation and ability to bear risk and thus his opinions may not be suitable for all investors.
Nasdaq Trending Higher
 

Related Articles

Nasdaq Trending Higher

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: This article is not meant to establish or continue an investment advisory relationship. Before investing, readers should consult their financial advisor. Christopher Grosvenor does not know your financial situation and ability to bear risk and thus his opinions may not be suitable for all investors.
Continue with Google
or
Sign up with Email