$COMPQ Resistance

By Johns Wu on Nov 02, 2005

Nice rally today on the Nasdaq on good volume. I haven’t seen this kind of true bullishness for awhile. Unfortunately, $COMPQ rallied right into the down-trending resistance.

The market is facing the yellow trendline yet again. However, there was actually really good volume on this runup, so it’s not easy to make a prediction on what will happen next. Also keep an eye on the on balance volume (OBV).

I’m unfamiliar with using options to gauge market strength, but Adam at Daily Options Report is, and he’s made some interesting comments on the VIX and VXO volatility indices.

This entry was posted on Wednesday, November 2nd, 2005 at 3:55 pm and is filed under Annotated Analysis. You can skip to the end and leave a response. Pinging is currently not allowed.

6 Responses to “$COMPQ Resistance”

By Anonymous on November 2nd, 2005 at 5:50 pm

I guess it all depends on data vendors and how accurately one draws a trendline; moreover, trendlines are sometimes subjective, although doesn’t seem to be in this case.

http://www.uglychart.com/

By andy on November 2nd, 2005 at 5:53 pm

On second thought, maybe the thickness of the trendline plays a role here.

By JWU on November 2nd, 2005 at 6:00 pm

yeah i had trouble deciding whether it had actuall broken through the resistance or not…

hope we will see some follow through on this rally tomorrow.

By andy on November 2nd, 2005 at 6:51 pm

I sure hope so. :) Nice blog you have here.

By Denis on November 2nd, 2005 at 10:45 pm

The boat has not fully left yet. Wait for some profit taking tomorrow or next few days and go for it. It still has ways to go.

By a on November 2nd, 2005 at 11:34 pm

I agree the market will move down. In fact, I think it’ll begin tomorrow. I’ll call it a buying opportunity for now.