Here is a weekly bar chart of the Nasdaq Composite index. I last commented on this chart here.
This average made new bull market highs this week. The striking thing about this chart is the clearly defined sequence of higher lows, each of which terminates a reaction that was smaller than the preceeding reaction. This is a sign of a market that is gaining technical strength, not loosing it as so many market technicians seem to believe.
I think the Nasdaq compostite will easily reach my 2550 bull market target. The risk I see is that the market is much stronger than even I believe. If so the rally will carry further to the 2900 level.
1 comment:
There are also progressively smaller upswings in your Nasdaq chart. I am sure this is what technicians who see a weakening market are pointing to. This raises the question, whats more important, length of the upswings or downswings? I believe length of the downswings are the better gauge during trends higher as your chart illustrates. As they say, markets rise not due to extra buying but due to lack of selling. Hence it makes sense to watch the corrections closely during the upward trends.
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