S&P 500 & Nasdaq Analysis and Trends

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:::: NASDAQ Composite Index Cash Summary Analysis
By: Marty Armstrong | July 21, 2018

Analysis for the Week of July 23, 2018

THE ANALYSIS FOR THE CLOSE OF Fri. Jul. 20, 2018: NASDAQ Composite Index Cash closed today at 782020 and is trading up about 13% 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 Thu. Jul. 19, 2018. We did exceed the previous session's high and closed lower. Nonetheless, the market remains positive.

The historical major high took place here in 2017 and we have since penetrated the low of last year intraday. This market on the yearly level has been making new highs since the last low established 1 year ago which has been a series of successive advances. The last 4 highs have been progressively making higher highs implying we have a bullish market in motion for the past 0. We have not elected any Bullish Reversals thus far.

Meanwhile, our technical resistance stands at 864342 and it will require a closing above this level to signal a breakout of the upside is unfolding. Considering our Reversal System, our next Weekly Bullish Reversal to watch stands at 809858 while the Weekly Bearish Reversal lies at 763572. This provides a 5.71% trading range. Turning to the broader Monthly level, the current Bullish Reversal stands at 898254 while the Bearish Reversal lies at 663066. This, of course, gives us a broader trading range of a 26%. Immediately, we closed the last session trading at the 782020, which is below this level on a daily closing basis at this moment. We need to close above this on a weekly basis to signal a rally is unfolding. Right now, the market is trading some 3.43% beneath that level.

A possible change in trend appears due come August in NASDAQ Composite Index Cash so be focused. The last cyclical event was a high established back during June. Normally, this implies that the next turning point should be a low. However, so far this market has already exceeded that previous high established at 780660. This strongly implies we are in a cycle inversion process, which tends to be rather bullish overall. Last month produced a high at 780660 but closed on the weak side and so far, we have exceeded last month's high. We now need to close above 780660 on a monthly basis to imply a further advance to the upside immediately for now. The projected resistance for this week stands at 793789 and we need to close above this level on a weekly basis to maintain any upward momentum.

Our Daily level momentum and trend indicators are both bullish 783882. Turning to the broader picture, our long-term trend and cyclical strength indicators are both bullish 779198.

On the weekly level, the last important high was established the week of July 16th at 786715, which was up 47 weeks from the low made back during the week of August 21st. So far, this week is trading within last week's range of 786715 to 774961. Nevertheless, the market is still trading upward more toward resistance than support. A closing beneath last week's low would be a technical signal for a correction to retest support.

This market has made a new historical high this past week reaching 786715. Here the market is trading positive gravitating more toward resistance than support. We have technical support lying at 785962 which we are currently trading below implying the market is very weak. This infers that this level will now be resistance. Our Major Channel Support lies at 750077 and a break of that level would be a bearish indication for this market.

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 23 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 23 weeks. The previous weekly level low was 663067, which formed during the week of February 5th, and only a break of 769658 on a closing basis would warn of a technical near-term change in trend. The last high on the weekly level was 786715, which was created during the week of July 16th, and has now been exceeded in the recent rally.

Critical support still underlies this market at 663066 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 28 months. The previous monthly level low was 420976, which formed during February 2016, and only a break of 699114 on a closing basis would warn of a technical near-term change in trend. The last high on the monthly level was 780660, which was created during June, and has now been exceeded in the recent rally. We have generated a buy signal so some caution is required.

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