Technical Analysis of Financial Markets

Sunday, November 05, 2006


The NASDAQ-100 Index Tracking Stock of the largest non-financial companies listed on the NASDAQ has broken below the uptrend support of the late summer rally which saw a 20% gain in price action in just over 3 months. The past two trading sessions have been unable to sustain a close above the uptrend support which now seems to be acting as resistance. A weekly close below this trendline may indicate a trend-reversal. Enter short-sell position for a target towards the 38.2% Fibonacci retracement support level of the uptrend. Stop-loss: close above $43.

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