S&P 500 & Nasdaq Analysis and Trends

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NASDAQ Composite Index Cash Summary Analysis
By: Marty Armstrong | May 26, 2018

Analysis for the Week of May 28, 2018

WRITTEN OPINION AS OF THE CLOSE Fri. May. 25, 2018: NASDAQ Composite Index Cash closed today at 743385 and is trading up about 7.68% 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. May. 23, 2018. Relying on our Reversal System, our next Weekly Bullish Reversal to watch stands at 756082 while the Weekly Bearish Reversal lies at 723817. This provides a 4.26% trading range. Turning to the broader Monthly level, the current Bullish Reversal stands at 879041 while the Bearish Reversal lies at 648413. 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 June in NASDAQ Composite Index Cash so be focused. Last month produced a low at 680596 and so far, we have exceeded last month's high. We now need to close above 750577 at month-end to imply a technical reversal of trend to the upside for now.

Looking at 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. 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.

The Daily level of this market is currently in a full bullish immediate tone with support at 743183. Thus far, we are still within a reactionary phase up two daily sessions.

On the weekly level, the last important high was established the week of March 12th at 763727, which was up 29 weeks from the low made back during the week of August 21st. We have been generally trading down to sideways for the past week, which has been a moderate move of .0165% in a reactionary type decline.

Looking at this from a broader perspective, this current rally into the week of May 14th reaching 745842 has failed to exceed the previous high of 763727 made back during the week of March 12th. We have seen only a minor reaction rally from the last low for the past week. A break of the last low will warn of a continued decline ahead. Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend. .

Overall, looking at the weekly level on our models, this market has been in a rising trend. We see here the trend has been moving up for the past 15 weeks. The last weekly level low was 663067, which formed during the week of February 5th, and only a break of 732097 on a closing basis would signal serious correction ahead. The last high on the weekly level was 745842, which was created during the week of May 14th.

Critical support still underlies this market at 648413 and a break of that level on a monthly closing basis would warn of a sustainable 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 26 months. The last monthly level low was 420976, which formed during February 2016, and only a break of 690107 on a closing basis would signal serious correction ahead. The last high on the monthly level was 763727, which was created during March. We have generated a buy signal so some caution is required.

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