Friday, March 17, 2006

Nasdaq Technical Picture

Click on charts for larger views.

On the week, the Nasdaq is not doing too badly. There's no point in analysing the day because it was options expiration so basically we are little changed from where we left off yesterday. I've posted a chart comparing the Nasdaq vs. the SPX (top of this post) over the last few years. Notice that when the Nasdaq leads there is a lot more momentum and the moves are steeper. In the last two years we've been stuck in a relatively narow trading range and unless the NAZ gets its mojo back soon, we are probably destined to go back and retest the bottom of the two year channel. Of course, the Nasdaq will likely lead the fall, thus, creating better shorting opportunities than we have at the moment.

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