Where's The Nasdaq Headed?
Carol Harmer | Oct 21, 2013 11:15AM ET
Nasdaq blasted through the uptrend channel we have been following and there seems no stopping it. However, that's what markets do when a change of fortune is about to bear down on us. So really there is no change in view.
I know we are in an uptrend...I understand that...but we are diverging on the weekly stochastics and that isn't a good sign and should send a signal to us that an end is in sight...for the short term anyway...Its a funny old thing...get everyone excited and bullish where even it is reported in the newspapers and TV...then wham.....it falls away and suckers everyone in longs and pukes...Now...it is difficult to buck the trend...especially as the daily charts remain positive....so..we stand back...go on reversal watch...
It is difficult to sell into such a strong trending market...but markets always look their best at a top...and worse at a bottom...This is why we need to take care....The acceleration and the gap still evident...does not bode well...and Nasdaq traders do need to keep their eyes on the DJI.....it has not made new highs on this move higher for the Nas....and this is something else we need to watch...
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