Nasdaq Composite & NYSE Bullish % Index 5/27/2014 – Technicals Positive & Improving
As I indicated in last week's update for the Nasdaq Composite, the higher high made by the Nasdaq and moving above the 4156 area would be ominous for the bears in the short-term. Here is an updated 3 month chart for the Nasdaq Composite. This next 6 month daily candlestick chart shows the recent bullish candlesticks (sans volume).
After making a higher high on Thursday last week, the Nasdaq has been full steam ahead, including the development of a Rising Window Candlestick Pattern so far with today's large gap-up. Any pullbacks to this support area would most likely indicate a chance to add to your favorite long positions for your Nasdaq stocks.
A pullback to the support area should also coincide with a pullback to the 50 Day Moving Average as seen on this chart from Investor's Business Daily (IBD). If this pullback occurs, I will consider purchasing additional shares of certain Nasdaq stocks at that time.
While the Nasdaq has shown some positive signs by making a higher high last week, buying volume also needs to start increasing again as well in order to attempt to break through its previous 52 week high at 4371.71.
The reading on the P&F Chart for the NYSE Bullish % Index from 2 weeks ago has improved slightly from 66.32 to a reading of 67.68 - readings above 70 are considered bullish.