It's that time again when we have to look at the Nasdaq monthly chart as we enter multi-year record territory. As you know, I have been expecting a test of 2645, 38.2% 2000/2002. We are very close, one strong day and it's done. There is nothing bearish on the monthly chart, not even a negative RSI divergence. That does not mean we keep climbing higher, it just means the chart looks bullish. Overbought, but that means nothing for traders. The only question is how the month ends: Doji (indecision), at highs (bullish) or the first red candle in four months? Time will tell. If we should break out above 2645, the next long term area of resistance is 2798.89, Feb 2001 high (dotted line) should 2645 hold on pullbacks. Failure at 2645 could set up a weak summer and a possible correction to 2328, major support.
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on Sunday, June 17, 2007 at 6/17/2007 01:58:00 PM.
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