Nasdaq looks to have made an important bottom. This may set up a year-end rally.
Several things to note on the following chart. The most important is that the Nasdaq held support line marked by the November low (green arrow), the September high (red arrow) and the July low (green arrow). Also, volume expanded on yesterday’s large turnaround. Further, the stochastic lines are turning higher from an oversold reading below 20. In short, this is a nice set up for a year-end rally.
The current opinions and forecasts expressed herein are solely those of Steve Blumenthal and are subject to change. They do not represent the opinions of CMG. CMGs trading strategies are quantitative and may hold a position that at any given time does not reflect Steve’s forecasts. Steve’s opinions and forecasts may not actually come to pass. Information on this site should not be used as a recommendation to buy or sell any investment product or strategy.