THE NASDAQ IS GIVING AWAY A LOT OF DETAILS ABOUT HOW AND WHEN A MARKET TOP WILL FORM

Posted By admin on Feb 21, 2012 | 0 comments

Both the Dow and the Nasdaq are moving along some murky water in terms of generational resistance points. I continue to believe that we don't see them broken with any real conviction until the second half 2012. They are just too substantial to be taken out without a significant amount of sideways chop in order to build up some firepower.

Here is a look at what are some very important generational resistance points for the Nasdaq and how they coincide so well with what I discussed regarding the Dow Jones Industrial Average last night.

The first chart shows the origination points of the resistance in order to gauge their significance and the second shows how they are influencing the market over the short-term:

click chart to enlarge

NASDAQ COMP MONTHLY CHART

NASDAQ COMP 2 DAY CHART