June 18, 2000. Nasdaq Composite Index closed 3860.56.
Situation indicates short-covering in the Nasdaq Composite Index. May 17, 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 May 24, when it bounced at 3042, below the 20-month moving average, but the Index successfully re-tested that level again at 3159 on May 30 to start the early June rally. The Nasdaq is overbought on the daily charts, enough for a sudden drop to 3500. With the exception of Intel and MCI Worldcom, the Nasdaq leaders have performed well this month. Yet the leaders all show signs of DISTRIBUTION. Expect this to be a warning of a 300-point drop soon. The Nasdaq has managed to stay within its current 3200-4200 trading range after breaking below it twice in recent months, but fundamentals do not support any sustained upward move over 4000. Bearish economic data on the TRADE IMBALANCE is coming very soon, and the Justice Dept. is still targeting large-cap Nasdaq-listed corporations.

5-minute Nasdaq chart support
5-period moving average 3853
20-period moving average 3855
MACD -4.24/-5.11 positive
RSI 34.67 neutral
STOCHASTICS 62.94/39.77% positive
15-minute Nasdaq chart support
5-period moving average 3855
20-period moving average 3855
MACD 4.33/7.93 negative
RSI 47.97 neutral
STOCHASTICS 40.34/44.86% negative
30-minute Nasdaq chart support
5-period moving average 3860
20-period moving average 3850
MACD 13.01/13.03 negative
RSI 58.56 neutral
STOCHASTICS 65.93/73.45% negative
60-minute Nasdaq chart support
5-period moving average 3853
20-period moving average 3831
MACD 14.08/10.33 positive
RSI 57.77 neutral
STOCHASTICS 78.22/76.21% positive
Daily Nasdaq chart support
5-period moving average 3850
20-period moving average 3716
MACD 56.17/16.37 positive
RSI 72.70 positive
STOCHASTICS 90.36/88.43% positive, but over-bought
Weekly Nasdaq chart resistance
5-period moving average 3763
20-period moving average 3866
MACD -16.32/72.72 negative
RSI 36.81 neutral
STOCHASTICS 33.57/29.85% positive
Monthly Nasdaq chart support
5-period moving average 3845
20-period moving average 3213
MACD 576.30/537.05 positive
RSI 73.17 positive
STOCHASTICS 60.36/72.89% negative

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