Some Thoughts on the NASDAQ

Will the NASDAQ repeat History?

While Fridays close left some powerful reversal patterns on most charts we still must consider the following. 1. Possible H&S, Head at 5K, Left shoulder around 2K in 1998 and Right Shoulder in 2002. The Neckline looks just below 1500.

2. The last big sell off in a measured type move points to the 700 area which also looks like a 1272 extension and some old support.

My guess is that if we break that late 2002 pivot low at about 1200 we will move to the 700 range with such force due to panic that the momentum could carry us down to the 500 range before a bounce.

The only way we move higher is to break above the 3000 resistance with Volume.

This was mentioned to me the other day while talking with friends about my personal Day Trading Disaster while looking at several charts, ” Candle Range”. Simply stated I Swing Traded the Market from 1998 through 2004 with great success and Started Day Trading in July of 2005, I was broke by the end of 2007. Just looking at the trading range of the candle sticks you can see nice wide range days when I traded well and the entire time I day traded nothing but tight range days.

Additionally my early trading days were done for fun, I love the Market. Day Trading was done for income and under severe strain of trying to earn an income, that didn’t work.

Such is Life,

David G.