SUPPORT LEVELS FOR THE NASDAQ COMPOSITE AND RUSSELL 2000 SMALL CAP INDEX

NASDAQ COMPOSITE SUPPORT... Yesterday I showed support levels for the Dow, the S&P 500, and the Nasdaq 100. So far, none of those support levels have been broken in today's trading. I've been asked to give a few more and here they are. The daily bars in Chart 1 show the Nasdaq Composite testing trendline support near 2075. That's an important test. Its point & figure chart show some initial support levels having already been broken. The next p&f support level is 2060.

Chart 1

Chart 2

RUSSELL 2000 SUPPORT... The Russell 2000 Small Cap Index is also testing trendline support. Today's low at 612.39 is just above its November 22 intra-day low at 612.02 (see first green arrow). Its point & figure chart (which uses a 2-point box size) shows support at 614. That means that the RUT would have to fall to 612 to break that support. That would also put the RUT just below its 11/22 low (but not by much). I suspect that the small caps, the Nasdaq, and the other indices we looked at yesterday are going to attempt a bounce from these support levels. If they don't, things are going to start looking a whole lot worse.

Chart 3

Chart 4