Replies to post #2308 on Ask Vendit Off Topic Questions

[Vendit]

This is a post excerp from some chart reads I did yesterday on the NASDAQ. They should give you an idea of what I think is technically possible on the lower end of the naz.

The NASDAQ trend-line/support and resistance charts through Friday.

This is a lifetime NASDAQ chart that shows 3 distinct trend lines. The first or shortest-term trend line was breached late last week.

http://www.angelfire.com/geek/VenditsCharts/life_naz_3_trend.gif

In this zoomed shot of the chart you can see that there is a fairly good lower support at about 1875 which was formed during the first quarter of 1998. Count 6 candles to the right of my mouse pointer and see the tall red support candle.

http://www.angelfire.com/geek/VenditsCharts/6_YR_NAZ_1874.gif

If the 1875 area is breached then there is a good chance next lower support at about 1450 will be the next support level down. This base was formed back in 1997, which also coincides with the lower end of the tall red candle I mentioned above.

http://www.angelfire.com/geek/VenditsCharts/7_yr_naz_1447_2.gif

This last chart (4-yr) shows a spinning top candle formed which can be seen as a reversal candle when grouped with the previous few candles.

http://www.angelfire.com/geek/VenditsCharts/4_yr_1450_2.gif

JMHO

Reid