May 9, 2000. Situation worsening, downward trend for the Nasdaq Composite Index.
The Nasdaq closed below the 20-day exponential moving average at 3900 quickly and convincingly May 2, ending the rally which began April 24. The Nasdaq tested the 4,000 level May 1, which is just above the weekly 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 May 2 until today on fears of inflation and higher interest rates. May 1, the Nasdaq had been overbought on the short-term charts as noted in my daily commentaries. That the Nasdaq only sold down to today's 3585 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 yet ready to stay above 4000 until the Federal Reserve LOWERS interest rates, and with all corporate profits now reported, the Nasdaq is ready to test long-term support at 3200, a level that will likely fail to hold.
05-minute Nasdaq chart resistance
5-period moving average 3592
20-period moving average 3587
MACD 5.38/4.97 positive
RSI 62.14 neutral
STOCHASTICS 41.54/58.17% negative
15-minute Nasdaq chart resistance
5-period moving average 3590
20-period moving average 3596
MACD -17.87/-25.54 positive
RSI 50.06 neutral
STOCHASTICS 66.08/57.68% positive
30-minute Nasdaq chart resistance
5-period moving average 3588
20-period moving average 3623
MACD -40.24/-40.30 positive
RSI 27.81 negative
STOCHASTICS 26.47/17.73% positive
60-minute Nasdaq chart resistance
5-period moving average 3591
20-period moving average 3660
MACD -48.60/-37.00 negative
RSI 21.99 negative
STOCHASTICS 16.30/12.55% positive
Daily Nasdaq chart resistance
5-period moving average 3688
20-period moving average 3816
MACD -150.23/-174.17 positive
RSI 52.10 neutral
STOCHASTICS 53.90/59.85% negative
Weekly Nasdaq chart resistance
5-period moving average 3815
20-period moving average 3968
MACD 89.33/256.53 negative
RSI 44.64 neutral
STOCHASTICS 29.67/40.87% negative
Monthly Nasdaq chart support
5-period moving average 3936
20-period moving average 3153
MACD 607.74/530.17 positive
RSI 77.57 positive
STOCHASTICS 66.40/77.89% negative

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