A Caution Condition is Appearing on the NASDAQ 100

By: Marty Chenard | Wed, Feb 29, 2012
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An Upper Bollinger with Decreasing Strength?

That is what has happened since 9th of February. Note the NASADAQ 100 chart below which show's the NASDAQ from the beginning of January to February 1st.

The movement was strong with the NASDAQ trending up along the Bollinger's upper Band, and with a 9 Relative Strength trending up higher as well. Now see chart 2 ...

NASADAQ 100 chart

This second chart shows a Caution Condition on the NASDAQ 100 that has developed after February 9th. There are two things to note here:

  1. That as the NASDAQ hit or went above its upper Bollinger Band, the 9-RSI kept trending higher from January to February 9th.

  2. That since February 9th, the 9-RSI was visibly lower with a Negative Divergence with the NASDAQ. That says the NASDAQ 100 has moved higher on less strength which is not a good condition.

Caution Condition on the NASDAQ 100

 


 

Marty Chenard

Author: Marty Chenard

Marty Chenard
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Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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