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Nasdaq Composite

25 Mar 2014 ‚óŹ 10:30 AM

Last month the break from a potential expanding triangle in S&P did not follow up but nevertheless the patterns forming are those that when they play out you get a knee jerk reaction. The weekly momentum cycle has lasted for over a year for the US market the longest without a correction in a long time. The Nasdaq moving up in a perfect narrow channel is another pattern that when it breaks the channel you get deep knee jerk reactions. What has happened over the year is that each correction has found support near the 20 week MA, so till that breaks we cant confirm any break as significant but still as seen in the second chart the weekly momentum and RSI have negative divergences worth taking note of. The last few days saw US markets correct mainly on account of the Nasdaq Composite and so keep close watch on it. The 20wma is at 4156

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