QQQQ Trend analysis and technical indicators

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Stock Market Trend Analysis Newsletter.

The Stock Market Week - 10/10/2008

On September 9th, when S&P 500 index was at 1,242.31, we suggested that, the S&P 500 is now in sub wave three of the third down wave, which is considered the worse in the five-wave structure. In one month index lost 27.6% and closed on Friday at 899.22. The Standard & Poor's 500 index had suffered its worst week since 1933.

All the major US indices were negative. For the week the Dow Jones Industrial Average dropped 1874.19 points, or 18.15%. The Standard & Poor's 500 Index dropped 200.01 points, or 18.20%, while the Nasdaq Composite dropped 297.88 points, or 15.30%.

The Consumer Staples sector has traditionally performed better than the stock market during market declines. The Consumer Staples sector was the strongest sector last week for the second week in a row, followed by the Technology sector. The Energy sector was the worst performing sector of the week followed by the Utilities sector.

The Financial sector is the most overvalued sector now, followed by, Consumer Goods, while Tobacco Products Other, Regional-Mid-Atlantc Bnks, Home Improvement Stores, and Cleaning Products are the most overvalued industries.

Conglomerates is the most oversold sector, followed by Basic Materials while Processing Systems/Prods, Aluminum, Metals Fabrication, Personal Computers are the most overvalued industries.

Dow Jones Industrial Average Trend Analysis
Three months ago in our publication on July 11th we suggested that Dow Jones Industrial Average long-term chart has formed a head and shoulders pattern. The price was at 11,100.54 then, and the pattern price target was approximately 9000, that three month back sound like a very pessimistic prediction. Last week Dow Jones dived below 9000 level and close on Friday at 8,451.19. The sharp price drop moved daily William's Percentage Range (W%R) into oversold area, while weekly W%R is strongly oversold. The oversold W%R is usually considered as an early warning indicator that signals exhaustion of the sharp down trend and predicts that it may slow down and reverse soon. Daily and weekly Relative Strength Index and Lane's Stochastic indicators are still neutral.

Dow Jones Industrial Average - Long-Term Trend

Standard & Poor's 500 Index Trend Analysis
Standard & Poor's 500 Index is in a long-term down trend that started on 10/11/2007 at 1576.09. The chart has formed a falling channel pattern. The third wave down is in progress now. It has started on 5/19/2008 and it is now forming a sub wave three down as well. According to this wave count, the S&P 500 is now in sub wave three of the third down wave. This sub wave is considered the worse in the five-wave structure. The support line is broken. Daily and weekly William's Percentage Ranges and daily Relative Strength Index are oversold, while daily Lane's Stochastic indicator is strongly oversold. According to the technical indicators, the sub wave three might be close to completion.

Standard & Poor's 500 - Long-Term Trend

Nasdaq Composite Index Trend Analysis
As we suggested previously, the Nasdaq Composite index had formed the long-term symmetric triangle chart pattern with sharp breakdown. The price target for a triangle pattern is usually derived by measuring the distance between the starting high point of the ascending triangle with the starting low point of the triangle, which is then projected downward from the breakpoint. According to our calculation, the projected price target should be around 1640. The Nasdaq Composite index price hit 1542.45 low on Friday. Daily Relative Strength Index and weekly Lane's Stochastic indicators are oversold, while daily and weekly William's Percentage Ranges and daily Lane's Stochastic indicators are strongly oversold. The sharp breakdown from the long-term symmetric triangle chart pattern could be close to completion.

Nasdaq Composite Index - Long-Term Trend

Presented by www.thegreedytrader.com Research Group.

S&P 500 members - Trend Support Alert

Daily and weekly indicators are oversold for all three major US indices. More than 28% of S&P members are oversold, and more than 22% have a Trend Support Alert.

Jul 4 , 2010

S&P 500 members - Downtrend Resistance alert

More than 60 S&P members have the Downtrend Resistance Alert. Daily Williams' Percentage Range and Lane's Stochastic are strongly overbought.

Jun 20, 2010

S&P 500 members - uptrend support alert

More than 30% of S&P 500 members have an uptrend support alert. This alert indicates that stock price is near the monthly uptrend support level.

May 23, 2010

Dow Jones Elliott Wave count

Dow Jones gained 68.03% in 53 weeks. The chart has formed a Rising Channel chart pattern. Fifth wave up is in progress.

Mar 21, 2010

NASDAQ at the highest level since September 2008

NASDAQ medium-term trend has formed a five-wave structure. The fifth wave is in progress now. The price is near the trend resistance line (2331.43).

Mar 5 , 2010

Is Dow Jones going above January high soon?

Dow Jones has advanced above the 50 Day Moving Average. MACD line has moved above its signal line. Both crossovers are considered as bullish signals.

Feb 19, 2010

The Dow Jones has formed a falling channel pattern

The Dow Jones lost 932.06 points, or 8.66%, since January 14. The downtrend has formed a falling channel pattern.

Feb 7 , 2010

The Dow Jones short-term down trend is near the support line

The Dow Jones is near the support line. Daily technical indicators are oversold. Almost 20% of S&P 500 members have an uptrend support alert.

Jan 31, 2010

S&P 500 has crossed below the 50 Day Moving Average

S&P MACD line has moved below its signal line; the price has crossed below the 50 Day MA and has closed below the lower Bollinger Band.

Jan 24, 2010

The Christmas rally has pushed the stocks ahead

The trend following indicators have turned bullish, while almost 20% of S&P 500 members are overbought.

Dec 25, 2009

Technical indicators caused a sharp stock market sell off

Strong resistance caused a sharp stock market sell off. The S&P 500 index has lost 3.3% in two days.

Sep 27, 2009

S&P 500 is forming a rising wedge pattern

S&P 500 is forming a rising wedge chart pattern. The next up leg could reach the resistance around 1075 in October.

Sep 6 , 2009

All three major US indices are overbought

109 out of S&P 500 members are overbought, 51 stocks have daily MACD bearish divergence.

Jul 25, 2009

S&P 500 - head and shoulders pattern

The S&P 500 has an Uptrend Exhaustion alert. Chart has formed the head and shoulders pattern. Price is near the neckline.

Jul 12, 2009

S&P 500 - Uptrend Exhaustion alert

The S&P 500 index has an Uptrend Exhaustion alert. The next resistance level is near 1044. The support is near 470.

Jun 7 , 2009

S&P 500 - downtrend resistance alert

The S&P 500 index has a downtrend resistance alert. The weekly ABC zigzag pattern is almost completed. Resistance is near 944.

May 10, 2009

The upside potential is limited

The S&P 500 upside potential is limited and chances are high that price will turn down soon. The support is near 805.

May 3 , 2009

S&P 500 chart has formed the broadening wedge

S&P 500 chart has formed the broadening descending wedge. The uptrend may pause for a while to reset technical indicators.

Mar 29, 2009

S&P 500 chart wave analysis

S&P 500 chart wave analysis and technical indicators suggest that the downtrend might be close to completion with the target around 650.

Feb 22, 2009

S&P 500 is forming a triangle pattern

Since mid October the S&P 500 is forming a horizontal expanding triangle pattern. The support is near 600, and resistance around 959

Jan 19, 2009

S&P 500 resistance is near 965

S&P 500 resistance is near 965 now and the support is near 738. S&P may turn down to retest the support line once more.

Nov 30, 2008

S&P 500 technical indicators have bullish divergence

S&P 500 technical indicators have bullish divergence. It is usually considered as an indicator that bears are losing power.

Nov 14, 2008

Major indices have formed a triangle chart pattern

All three major indices have formed a triangle pattern. Usually, in a mature trend a it is considered as a reversal pattern.

Oct 12, 2008

Bear market technical indicators

According to the technical indicators, the sharp market down wave might be close to completion.

Oct 12, 2008

Bear market statistics

Average length of a bear market - 18.5 months (current - 12). Average bear market decline - 36% (current - 28%).

Oct 5 , 2008

Major indices posted the biggest gains since 2002

The Dow Jones, S&P 500 and Nasdaq have posted the biggest gains since October 11, 2002 in two consecutive trading sessions.

Sep 19, 2008

Dow - head and shoulders pattern

Dow Jones long-term chart has formed a head and shoulders pattern. After retesting the neckline Dow has resumed the long-term downtrend.

Sep 7 , 2008

Nasdaq is forming a triangle chart pattern

Nasdaq is forming a triangle chart pattern. It usually represents an area of indecision, where the direction of the movement is questioned.

Aug 17, 2008

S&P 500 has formed a Bearish Advance Block pattern

The down trend might not be completed yet, and it may resume soon. On Friday, S&P 500 Index has formed a Bearish Advance Block candlestick pattern.

Jul 20, 2008

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