Here’s How Stocks Form New Base Patterns

The
NASDAQ is nestled all snug against resistance, with our hopes that
it will soon move higher!  The 2,150 area has been a barrier for this leading
index for the past couple of weeks.  We saw heavier volume as it approached
this level yesterday.  Whether or not it makes it through on this second
attempt remains to be seen.  One thing I strongly believe is that it is only a
matter of time before we get above this level.

 

 

The great thing we can
benefit from through corrections and consolidations that are brought upon by
resistance is that stocks are able to form new base patterns from which to
launch.  Google (GOOG) has been a recent example.  The stock has been
basing for about 6 weeks and found support at its 50-day moving average.

 

 

Yahoo! (YHOO) is an
old dog that may be up to new tricks as it is also basing and finding support
at its 50-day moving average.

 

 

After last week’s same-store
numbers and holiday sales forecasts, some have called a top in Retail (RTH). 
I, on the other hand believe we are still seeing healthy action as there is
still strong leadership from names like Urban Outfitters (URBN) and
Bebe while the HOLDERs themselves have found support at their 50-day
moving average.

^next^

 

 

Apple’s (AAPL) iPod
has provided an excellent product to fuel new sales for this leading company. 
Institutions have supported the stock all the way up as it appears to be
currently basing right at its all-time high of $75.19. 

 

 

The market remains healthy
and worth investing capital in. 

Tim Truebenbach