May 22, 2000. Nasdaq Composite Index closed 3364.21.
Situation still shows a serious breakdown for the Nasdaq Composite Index. The Nasdaq Composite has been weak on fears of inflation and higher interest rates, and now has to worry about the Justice Dept. looking at Cisco as a target, which is the latest rumor. Last Tuesday, at 3700, the Nasdaq was over-bought on the short-term charts as noted in my daily commentaries. It dropped like a rock in water until today, when it bounced at 3172, very near the 20-month moving average (3146), but the Index has quickly became over-bought on the 5-minute and 15-minute charts. There is some upside room on the 30-minute and 60-minute charts, enough room for a half-day rally. With the exception of Intel, which declared a stock split, the Nasdaq leaders are riskier than a week ago. Today's late bounce, and expected upward continuation into Tuesday, May 23, will be followed by a steep drop into next week. The Nasdaq has managed to stay in its current trading range between 4200 and 3200 for over a month, but is now ready to move below 3000. With corporations finished reporting profits, bearish economic data coming very soon, and the Justice Dept. hunting for large corporations to break apart, the Nasdaq Composite Index is ready to test long-term support at 3146, a level that will not hold.

5-minute Nasdaq chart support
5-period moving average 3340
20-period moving average 3293
MACD 33.12/26.16 positive
RSI 73.54 positive
STOCHASTICS 90.86/86.79% positive, over-bought
15-minute Nasdaq chart support
5-period moving average 3314
20-period moving average 3279
MACD -2.07/-26.57 positive
RSI 64.57 neutral
STOCHASTICS 87.89/76.99% positive
30-minute Nasdaq chart support
5-period moving average 3300
20-period moving average 3311
MACD -55.46/-75.10 positive
RSI 35.16 neutral
STOCHASTICS 59.14/35.14% positive, improving
60-minute Nasdaq chart resistance
5-period moving average 3305
20-period moving average 3385
MACD -83.36/-79.37 negative
RSI 22.03 negative
STOCHASTICS 42.94/24.05% positive, improving
Daily Nasdaq chart resistance
5-period moving average 3454
20-period moving average 3633
MACD -145.27/-147.11 positive
RSI 40.23 neutral
STOCHASTICS 29.48/34.46% negative
Weekly Nasdaq chart resistance
5-period moving average 3507
20-period moving average 3917
MACD -17.97/164.58 negative
RSI 41.47 neutral
STOCHASTICS 17.97/28.87% negative
Monthly Nasdaq chart support
5-period moving average 3797
20-period moving average 3146
MACD 590.13/526.65 positive
RSI 76.87 positive
STOCHASTICS 63.74/79.00% negative

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