Short-term Moment of Truth
As Landry’s team of six-year-old analysts would remind us, we’re still in a
downtrend, as evidenced by the fact that it’s going from the “upper left to
the lower right.”
But over the next few days, we have the opportunity to see a move that may
have favorable ramifications for the next few weeks to few months.
Since late Aug., the Nasdaq Composite
(
$COMPX |
Quote |
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PowerRating) has been
following a steep channel downwards. But a week ago (A), we hit the bottom of a
trading range that dates back to early 1999. The follow-through off that bounce
has taken us back to the top of this channel (B). A break above the channel make
give a shot of momentum that will take us back to the critical 2700 level (C)
which is the top of 1999 range. That could lead to a multi-week rally.
If all of the above happens, it’ll be constructive. But the
sobering fact remains that we’ll still be in a downtrend.
Until Friday,