First, let's
start with our Fear Index chart. As of this morning at 10:15 AM, the Fear
Index's
fast green line moved up much higher toward the top of Fear
Territory. It is still not in Mild to No Fear
Territory, but it is
improving. The question is, "Will it move up and STAY there, or move back
down
like it recently did in a spike.?". Right now, conditions are
improving, but you still want to see the
Fear Index's green fast line make a
higher/high and move into Mild Fear territory or risk levels
remain higher
than you want to see in a good risk/reward equation.
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The NYA index chart below shows that it is
moving up nicely this morning, but still has its Red Resistance
line to work
through today.
Up until now, the Index has maintained
lower/highs, and lower/lows. Hopefully, today's move will sustain
and a
higher/high can be made that will change the downtrend.
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In our last charts, I will show a long term
and short term view of the NASDAQ Composite.
First, the Long Term view below. Note
the very top and very bottom green and red resistance/support
lines.
These are 4 and 3 year lines that have a lot of
resistance and support behind them. What is noteworthy,
is that just as
both of these intersected, the NASDAQ Composite's price was moving into this
critical
test area. Now, let's go to the next chart for a close up
view.
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This is the "close up" view of the NASDAQ
Composite as of 10:42 AM TODAY.
Its price gap up nicely this morning,
but is now still slightly below the Green 4 Year Resistance line.
That means
that it still has to work ABOVE this resistance line today, and then above the
Red 3 Year
Resistance line next to have a new important trend take
affect.
Bottom line ... this is a critically
important day that is the "big test" of whether or not we can start
a new
uptrend, or fail and move down. If we successfully move to the upside, the
implications for
a positive rally that will hold are good. One key to
keep an eye on will be our Fear Index and what it does.
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