S&P 500 & Nasdaq Analysis and Trends

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NASDAQ Composite Index Cash Summary Analysis
By: Marty Armstrong | January 13, 2018

Analysis for the Week of January 15, 2018

THE ANALYSIS PERSPECTIVE AS OF THE CLOSE OF Fri. Jan. 12, 2018: NASDAQ Composite Index Cash closed today at 726106 and is trading up about 5.18% for the year from last year's closing of 690339. So far, we have been trading up for the past 2 days since the reaction low made on Wed. Jan. 10, 2018, but the key low was made 10 days ago on Fri. Dec. 29, 2017 at 690339.

The last event was a low established during 2016.

A possible change in trend appears due come February in NASDAQ Composite Index Cash so be focused. Last month produced a high at 700389 and so far, we have exceeded last month's high. We now need to close above 700389 on a monthly basis to imply a further advance to the upside immediately for now. The projected resistance for this week stands at 744619 and we need to close above this level on a weekly basis to maintain any upward momentum.

Viewing the near-term level, the market has closed up 63.9% from the last cycle low established during 2016, which has been only a 1 year rally as of last year. Flipping to the long-term perspective, the market has still closed on the Yearly level up 522.7% from the strategic low established during 2002, which has been a 15 year rally into last year.

The Daily level of this market is currently in a full bullish immediate tone with support at 716135

On the weekly level, the last important high was established the week of January 8th at 726526, which was up 20 weeks from the low made back during the week of August 21st. We have been generally trading up since that low, which has been asharp move of 5.24% percent in a stark panic type advance. The broader perspective, this current rally into the week of January 8th has exceeded the previous high of 700389 made back during the week of December 18th. We have seen a rally so far from the last low at 617719 made the week of August 21st, and only a break of that low would signal a technical reversal of fortune. Otherwise, the market remains strong at this time. Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend, long-term trend, and cyclical strength. Looking at this from a wider perspective, this market has been trading up for the past 18 weeks overall.

Currently, this market remains in an uptrend posture on all our indicators looking at the weekly level. We see here the trend has been moving up for the past 80 weeks. The last weekly level low was 457425, which formed during the week of June 27th. The last high on the weekly level was 726526, which was created during the week of January 8th, and has now been exceeded in the recent rally.

Critical support still underlies this market at 617718 and a break of that level on a monthly closing basis would warn of a decline ahead becomes possible. Nevertheless, the market is trading above last month's high showing some strength. On a broader perspective, this market remains in an uptrend posture on all our indicators looking at the monthly level. We see here the trend has been moving up for the past 22 months. The last monthly level low was 420976, which formed during February 2016. The last high on the monthly level was 700389, which was created during December 2017, and has now been exceeded in the recent rally. We have generated a buy signal so some caution is required.

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