May 3, 2000. Situation unstable, no trend for the Nasdaq Composite Index.
The Nasdaq closed below the 20-day exponential moving average at 3900 quickly and convincingly yesterday, ending the rally which began April 24. The Nasdaq tested the 4,000 level Monday, which is just above the 20-day resistance. Bouncing sharply off a low of 3230 on April 17, the Nasdaq ran up 800 points in ten trading days, only to sell off yesterday and today on fears of inflation data and higher interest rates. Monday, the Nasdaq had been overbought on the short-term charts as noted in my daily commentaries. That the Nasdaq only sold down to 3707 is evidence of unusual long-term strength supporting the average. The fundamentals look good for many of the Nasdaq technology leaders, that is, strong earnings and no debt on the balance sheets. Yet the Nasdaq has stayed in its current trading range between 4200 and 3200 for a month. The Nasdaq is not be ready to stay above 4200 until the Federal Reserve LOWERS interest rates, but with corporate profits running above expectations, the Nasdaq has good long-term support at 3200.
05-minute Nasdaq chart support
 20-period moving average 3650
MACD 3.11/-8.24 positive
RSI 54.24 neutral
STOCHASTICS 83.42/60.84% positive
15-minute Nasdaq chart support
 20-period moving average 3675
MACD -37.12/-46.76 positive
RSI 34.96 neutral
STOCHASTICS 48.00/25.99% positive, looks bullish
30-minute Nasdaq chart resistance
 20-period moving average 3725
MACD -63.30/-57.37 negative
RSI 16.38 negative
STOCHASTICS 26.85/12.17% positive, over-sold, about to rally
60-minute Nasdaq chart resistance
 20-period moving average 3770
MACD -41.88/-9.60 negative
RSI 16.90 negative
STOCHASTICS 13.45/11.42% positive, over-sold, about to rally
Daily Nasdaq chart resistance
 20-period moving average 3900
MACD -175.21/-216.89 positive
RSI 41.33 neutral
STOCHASTICS 69.07/55.27% positive
Weekly Nasdaq chart resistance
 20-period moving average 4056
MACD 138.88/297.82 negative
RSI 47.62 neutral
STOCHASTICS 34.57/46.28% negative
Monthly Nasdaq chart
 20-period moving average 3213
MACD 623.73/533.37 positive
RSI 78.29 positive
STOCHASTICS 68.82/80.70% negative

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