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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