This is a note I posted today late in the morning. If you would like to get posts like these on a more timely basis...as well as receive my daily comments and "The Weekly Top 10" piece, please join us and subscribe to "The Maley Report" by clicking here.
If (repeat, IF) the stock market sees more weakness today, We’ll be watching the 13,000 level on the Nasdaq Composite. 13,000 was the intraday lows from last Tuesday, last Friday and this past Monday for the Nasdaq Composite...so it’s a near-term support level. However, more importantly, it is ALSO the “neck-line” of a “head & shoulders” pattern...AND it is ALSO where the trend-line from last March comes-in! (We’d note that the same is true for the 12,750 level on the NDX Nasdaq 100 Index.)
If the Nasdaq Composite fell that much, it would be down less than 8% from its all-time highs, so we are certainly not calling the 13,000 level an vitally important “line in the sand” support level. However, a meaningful break below 13,000 (and a meaningfulbreak below 12,750 on the NDX) will still be a compelling warning signal if (again, IF) it takes place. Therefore, it’s something we’ll be watching quite closely for the rest of today...and the rest of this week.
Matthew J. Maley
Chief Market Strategist
Miller Tabak + Co., LLC
Founder, The Maley Report
275 Grove St. Suite 2-400
Newton, MA 02466
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