While the stochastic remains heavily overbought (which it can for extended periods of time) price broke through resistance to make new highs. the bearish hanging man formation was rejected and we have new highs. While price may retreat a bit from this level the channel higher is intact. Prices will continue north over the medium term.
Well, the basic NASDAQ is what it is. But on a bigger picture and scale, NAsdaq 100 Above 20 day Average is a very good indicator of the trend.
Bare in mind that the growth rate of US was -1% for 1Q2014... And this despite a low USD, favorable for export, number of jobless decreased, Shell-gas production increased.......
Therefore, the trend is really worrying...
We may be on the eve of a double top, but we do need confirmation. The candles on the next coming days may confirm or not but we need to observe them.
We are at an oversold level, and if there is a fall in the market for the next two days, we may assume that we are at the formation of a double top. Which then means that the neck line is at 3450, and perfectly fit...
With FED's QE1+QE2+QE3, we are already at an almost overbought level.
The increase of the market is not natural. But it is something we could have calculated.
I did Fibo Retracement on the upside with projection based on the simulation of QE1 and real effect, a projection of QE2 and recalibration with FIBO retracement, and QE3 based on the previous 2 QE.
My...
