08/06/2009 Market Recap: Nasdaq Leads Market?

Summary:

Could be a rebound at least tomorrow morning especially QQQQ.

2 vs 2 bulls won? Not sure if I counted correctly.

Nasdaq leads market pullback this time again?

No conclusion today, a few interesting charts though.

1.0.3 S&P 500 SPDRs (SPY 30 min), 1.1.5 PowerShares QQQ Trust (QQQQ 30 min), Bearish Rising Wedge target fulfilled and a new price channel could be formed, especially QQQQ which has a few positive divergences, so very likely it will rebound at least tomorrow morning.

7.1.0 Use n vs n Rule to Identify a Trend Change, if no new high today, 2 vs 2, bulls won, then the pullback could be seen as a buyable dip. Just because SPX had a new high today, so I’m not sure if it could be counted as 2 vs 2.

As we all have noticed that Nasdaq lagged recently. Unlike SPX, Nasdaq failed to reach a new high recently. This is like a general (SPX) leads the charge while soldiers (Nasdaq) fall behind, therefore it’s a bearish sign.  I don’t know if it’s true or not, just from the chart below, the last time this happened, market had a little bigger pullback.