S&P 500 & Nasdaq Analysis and Trends

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NASDAQ Composite Index Cash Summary Analysis
By: Marty Armstrong | December 29, 2018

Analysis for the Week of December 31, 2018

THE ANALYSIS PERSPECTIVE AS OF THE CLOSE OF Fri. Dec. 28, 2018: NASDAQ Composite Index Cash closing today of 658452 immediately is trading down about 4.61% for the year from last year's closing of 690339. So far, we have been trading up for the past 4 days since the low made on Mon. Dec. 24, 2018. We have advanced 5.47% from the previous day implying the market is still very strong. We did close above the previous session's high and the market remains quite weak. (Note: We have included reference to Reversals and Short-Term timing considerations in this Summary Analysis, but please keep in mind this is a preview only - these references will be removed from Summary Analysis and moved to our higher levels of market analysis upon the upcoming launch of our expanded platform service.)

Turning to the broader cyclical outlook, the map of the future is certainly interesting. and since we have made a new high. This warns that a year-end closing below 690339 would suggest that a correction into the next target due 2022 becomes possible.

During this year, we have exceeded last year's high which formed the new historical major high to date and we have been in a bull market for a very extended period of 44 years. The last major cyclical low took place in 2002 from which we have witnessed a 16 year broader-term rally. On the shorter-term perspective, the last minor cyclical low took place in 2016 from which we have experienced a 2 year rally. 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. Making use of our Reversal System, our next Weekly Bullish Reversal to watch stands at 0 while the Weekly Bearish Reversal lies at 631342. This provides a 0.In% trading range. Turning to the broader Monthly level, the current Bullish Reversal stands at 763728 while the Bearish Reversal lies at 680595. This, of course, gives us a broader trading range of a 10%. Immediately, we closed the last session trading at the 658452.

A possible change in trend appears due come February 2019 in NASDAQ Composite Index Cash so be focused. The last cyclical event was a low established back during November. Normally, this implies that the next turning point should be a reaction high. However, so far this market has already broken that previous low established at 683076. This strongly implies we are in a cycle inversion process, which tends to be rather bearish overall. Last month produced a low at 683076 but closed on the positive side and so far, we have broken beneath last month's low 683076 closing yesterday at 658452. We now need to close below 683076 on a monthly basis to imply a continued decline is possible.

Our Daily level momentum is bullish while the trend indicator is bearish providing a mixed short-term posture for the market. Turning to the broader picture, our long-term trend and cyclical strength indicators are both bearish reflecting resistance forming at 619016.

On the weekly level, the last important high was established the week of August 27th at 813330, which was up 53 weeks from the low made back during the week of August 21st of 2017. We have been generally trading down for the past 17 weeks, which has been a very dramatic move of .2389%.

Immediately, this decline from the last high established the week of August 27th has been important closing sharply lower as well. Before, this recent rally exceeded the previous high of 793331 made back during the week of July 23rd. That high was likewise part of a bullish trend making higher highs over the the week of June 18th. This decline has been rather significant coming within 0.20% of the last low formed at 617719 which is providing initial technical support for now. Right now, the market is below momentum on our weekly models casting a bearish cloud over the price action. Looking at this from a wider perspective, this market has been trading up for the past 4 weeks overall.

At this moment, this market is in a downward trend on all our indicators looking at the weekly level. Bearing in mind the direction of this trend, we had been moving down for-2482 weeks. Subsequently, the market has consolidated for the past 2499 sessions. The last high on the weekly level was 813330, which was created during the week of August 27th. The previous weekly level low was 663067, which formed during the week of February 5th, and has now been broken in the recent decline. However, we still remain below key support and key resistance now stands at 760424 above the market.

Taking a broader view, this market is in a downward trend on all our indicators looking at the monthly level. We can see this market has been down for the past month. The last high on the monthly level was 813330, which was created during August. The previous monthly level low was 420976, which formed during February 2016, and only a break of 692283 on a closing basis would warn of a technical near-term change in trend. However, we still remain above key support 680596 on a closing basis.

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