The Nasdaq break out over the ascending triangle is a longer term Bullish sign. Short term, the Nasdaq appears to be over extended. Look for a pullback towards the red trendline.

Nasdaq Near Term Overbought
Source: Technimentals

A retracement towards the 2000 level, while staying above the red trend line, would provide a lower risk entry point.

Random Items:
Temp Hiring Signals Economic Recovery
ARCH ENEMY: Super Size Me
Seven earnings reports that matter
Doing Business With The Enemy
The Bagel and the Index Fund
China-US: Double bubbles in danger of colliding?

Quote of the Day:
“Despite the mania of the 1920s and the subsequent crash of 1929 into the 1932 low (a three-year decline much like March 2000 into March 2003), the market rallied for five years — until 1937 — before a new secular bull began in 1942. Bear market rallies are impressive. That’s their job, of course, to convince the herd that the bear is dead.”
-Jeff Cooper

Category: Finance, Media

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Chart of the Day: Nasdaq Near Term Overbought”

  1. muckdog says:

    A pullback? Everyone is saying that. Everyone is wrong (as usual). We keep going up…