NASDAQ TESTS TOP OF TRIANGLE -- DOW AND S&P 500 TEST OVERHEAD RESISTANCE

NASDAQ TESTS TOP OF TRIANGLE... I've received a lot of questions about the bearish triangle I recently described in the Nasdaq Composite Index. As you can see in Chart 1, it hasn't been resolved one way or the other. After surviving a test of its lower half, however, it's now testing the upper trendline. While the Nasdaq market hasn't moved much, other parts of have shown some upside improvement. Charts 2 and 3 show the Dow Industrials and the S&P 500 moving up to challenge their 50-day averages and their early February peaks. A decisive close over those initial chart barriers would certainly improve the market's short-term trend. It's going to have to do a lot more, however, to repair some of damage done recently to weekly and monthly indicators. [Please see my two earlier Market Messages on the impact of the yield curve on the various financial markets, and why the Euro hitting a record high against the dollar today is bearish for the greenback but bullish for gold stocks].

Chart 1

Chart 2

Chart 3