WHEN RESISTANCE TURNS INTO SUPPORT: A LOVE STORY

Posted By admin on Feb 23, 2012 | 0 comments

I tweeted today that an important technical phenomenon was taking place in both the Dow and Nasdaq simultaneously. They are both hanging out around generational trajectory points and in both instances, the trajectory points have turned into support areas instead of acting as resistance. This is bullish over the near-term and gives a very strong indication that another push higher is coming. Especially when considering how technically sound the consolidation has been within the current uptrend.

Here are the charts of the Nasdaq and Dow.

click chart to enlarge

NASDAQ COMPOSITE

DOW