Chart of the Day: Nasdaq Near Term Overbought

The Nasdaq break out over the ascending triangle is a longer term Bullish sign. Short term, the Nasdaq appears to be over extended. Look for a pullback towards the red trendline.

Nasdaq Near Term Overbought
Source: Technimentals

A retracement towards the 2000 level, while staying above the red trend line, would provide a lower risk entry point.

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Quote of the Day:
“Despite the mania of the 1920s and the subsequent crash of 1929 into the 1932 low (a three-year decline much like March 2000 into March 2003), the market rallied for five years — until 1937 — before a new secular bull began in 1942. Bear market rallies are impressive. That’s their job, of course, to convince the herd that the bear is dead.”
Jeff Cooper

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What's been said:

Discussions found on the web:
  1. muckdog commented on Jan 26

    A pullback? Everyone is saying that. Everyone is wrong (as usual). We keep going up…

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