Last week, the Nasdaq Composite burst through what we
described as a “confluence of technical factors:” 200-day moving average (1995), the downtrend line from the December
highs (1996) and the 50% retracement of losses from March highs to April lows
Nasdaq – 6 Month Chart
click for larger graphic
Source: Gary B.
The 2,000 resistance level now offers both psychological and
technical support, and is approximately 2.5% below recent close. That is your
new line in the sand – and your stop loss.
of the Day:
"One of the funny things about the stock market is that
every time one person buys, another sells, and both think they are astute.
" –William Feather