TSBTV#59 - Market View 5-3-2009
Posted on: May 3, 2009
It’s Sunday again, which means it’s time for a big-picture view of the market ahead of a brand new trading week. Hopefully the weekend has been a good one for you, and you’re getting ready to rock and roll this week.
With the Monday morning opening bell comes opportunity, but only for those prepared enough to face it. Homework is something we must all do as traders, and here that begins with a look at the key influencers over most individual stocks - the indexes.
So here in Episode 59, we’ll take an overall view of the NAZ, S&P 500, and DJIA and discuss some important levels to keep an eye on in the coming days. Hope you find it helpful!
(Be sure to click the full-screen option for best viewing.)
Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.
Trade like a Bandit!
Jeff White
President, TheStockBandit, Inc.
www.TheStockBandit.com (Premium service)
www.TheStockBandit.net (Trading Blog)
May 3rd, 2009 at 7:58 pm
Hi Jeff, I see a confirmed double bottom pattern on the NASDAQ. With the first bottom occurring on Nov. 11th, 2008 and the second bottom occurring March 9th, 2009. The pattern was confirmed on April 24 when we closed above 1,665. After the huge bear market of 2008 this could be the reversal of the bear trend. If the pattern holds up like it is supposed to, according to classical technical analysis, it now has a profit target of 2,035 within the next 3 months (since that is the time it took the pattern to form).
Are you seeing the same thing?
May 3rd, 2009 at 10:44 pm
Hey Waldo,
Thanks for your comments, I’m glad to see them being shared.
Yes I do see the confirmed double-bottom in the NAZ, as it briefly undercut the November low and then rallied back above the January high.
But as for the projection, keep in mind that even though the NAZ is leading the way up right now, it will need continued sympathy strength in the S&P 500 to keep climbing. The S&P 500 has yet to achieve a high beyond the January peak, and I think these 2 indexes are equally important. So yes the NAZ has a great pattern in its favor, but it’s unlikely to continue climbing higher for very long without the ongoing support of the S&P 500.
Thanks for watching!
Jeff