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Within the Channel -Trend Continues August 5, 2018

Posted by Tom in Thoughts.
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Aug. 3, 2018 – I’m taking a short vacation but never “away” from the markets, but these posts will be brief.  Looking at the chart below we see that the broad NASDAQ Composite Index did the “predictable” in that it broke to the lower trend channel line and reverted higher.  Now . . . . looking at Fridays bar (the last one on the chart) we nore it being a very narrow range bar; indecision.

NASDAQ

Investors are unsure as to buy or sell into this short term rally.  The 7604 level is now support and the 7933 is now resistance.  A break below 7604 spells problems, especially if volume (selling) increases.  The 7933 level is the previous high, which is where selling appeared.

So, we’re really at or near a crossroad where this market could show it’s hand into the Fall.  Friday showed us that indecision.  What this market needs is leadership and a reason to bring buyers into the market.  Here’s a listing of current market sector strength in the short term:

Sectors

Have a good week.       ………..  Tom  ……………

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