S&P 500 & Nasdaq Analysis and Trends

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NASDAQ Composite Index Cash Summary Analysis
By: Marty Armstrong | February 22, 2018

Analysis as of the close February 21, 2018

OUR ANALYTICAL OPINION AS OF THE CLOSE OF Wed. Feb. 21, 2018: NASDAQ Composite Index Cash closed today at 721823 and is trading up about 4.56% for the year from last year's closing of 690339. So far, we have been trading up for the past day since the reaction low made on Tue. Feb. 20, 2018, but the key low was made 8 days ago on Fri. Feb. 9, 2018 at 663067. Looking at our Reversal System, our next Weekly Bullish Reversal to watch stands at 726527 while the Weekly Bearish Reversal lies at 677948. This provides a 6.68% trading range. Turning to the broader Monthly level, the current Bullish Reversal stands at 867696 while the Bearish Reversal lies at 633458. This, of course, gives us a broader trading range of a 26%.

The last event was a low established during 2016.

A possible change in trend appears due come this month in NASDAQ Composite Index Cash so be focused. Last month produced a high at 750577 and so far, we have broken beneath last month's low 692408 closing yesterday at 721823. We now need to close beneath 692408 on a monthly basis to imply a technical reversal of trend to the downside for now.

Regarding 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 from that event. Nonetheless, turning 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 from that key event.

Our Daily level momentum and trend indicators are both bullish reflecting support forming at 743365. Turning to the broader picture, our long-term trend and cyclical strength indicators are both bearish reflecting resistance forming at 713039.

On the weekly level, the last important high was established the week of January 22nd at 750577, which was up 22 weeks from the low made back during the week of August 21st. We have been generally trading up for the past week from the low of the week of February 5th, which has been a move of.0924 percent.

Overall, looking at the weekly level on our models, this market has been in a rising trend. Here we have rallied for the past week. The last weekly level low was 663067, which formed during the week of February 5th, and only a break of 663067 on a closing basis would signal serious correction ahead. The last high on the weekly level was 750577, which was created during the week of January 22nd.

Critical support still underlies this market at 633458 and a break of that level on a monthly closing basis would warn of a sustainable decline ahead becomes possible. 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 23 months. The last monthly level low was 420976, which formed during February 2016, and only a break of 673413 on a closing basis would signal serious correction ahead. The last high on the monthly level was 750577, which was created during January, and the market has turned lower falling to 663067. We have generated a buy signal so some caution is required.

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