Morning Report – January 30th, 2014
In spite of the extremely negative day for stocks, the NASDAQ Composite managed to close just one point below Monday’s low, which is now very short term support. I still believe that unless the 4000 level is taken out on the close and on relatively heavy, the NASDAQ remains in a consolidation area.
A short term down trend has been established, but I don’t believe the market positive market psychology that we have seen will be broken until 4000 is taken out convincingly. The second chart below shows the NASDAQ as a weekly chart, and there is support at the 4000 leveling going back to November. As for the NASDAQ yesterday, decliners led advancers by a 3.488 to 1 margin, volume was heavy at over 2 billion shares, but new highs actually were up compared to the prior day. Also, the Arms index suggests there was strong buying in selected issues. Read full report