Using Intel To Figure Out The Nasdaq
If you care about where the Nasdaq is going, it’s
always a good idea to keep you eyes fixed on its bellwether stocks Intel
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PowerRating), Cisco
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Sun
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PowerRating).
On Monday, the Nasdaq was weak, weighed down by the likes of INTC and others techs. INTC hit potential support at the bottom of an expanding
triangle. This produced a big bounce on nearly double the average daily volume, which
took INTC back above its 200-day moving average.
Being aware of this potential support in INTC, you might have had reason to
suspect that some upside pressure might come into the Nasdaq today. That was
indeed the case with the Naz up over 130 points into the close.
If you were caught off guard by today’s action, you might want view the above
chart as a fresh “heads-up” for tomorrow because INTC is hitting a
potential resistance level off its broken early-August support level. Will
Wednesday’s action be a mirror image of today’s? I won’t make that prediction
because the market will do whatever it wants to do. But, at minimum, you can
benefit from knowing that this is one possible scenario.
See you tomorrow,
Eddie