Replies to post #10547 on Sector Investing

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Amateur Investors Weekend Stock Market Analysis (4/12/14)

http://www.amateur-investor.net/Weekend_Market_Analysis_April_12_2014.htm

The market remains fragmented with the technology and small cap stocks being hit the worst. So far the Nasdaq is down 8.7% from its early March high while the S&P 500 is only down 4.2% from its late March high.



Overall I expect a decent oversold bounce could develop next week since the Nasdaq is approaching its 200 Day EMA (blue line). Also one could count the move down from the early March high as a corrective "WXY" Double Zig Zag.



Finally we could be seeing the early stages of a large Head and Shoulders Top pattern as well. In this scenario the Nasdaq would bounce strongly off its 200 Day EMA allowing for a 2nd Shoulder to develop.