Nasdaq 100 levels and note

As the year to date return numbers indicate the NASDAQ down only - 0.98 % through 4/7/09 versus the S&P 500 down - 9.71 % (same time frame) acts better than the rest of the market.

From a technical perspective we see this same outperformance with the NASDAQ 100 retesting and holding in line with its’ November lows, scoring a minor double bottom, while at the same time the S&P 500 dropped to new lows.

Similar to the S&P 500 we view the current action in the NASDAQ 100 as a pause/consolidation. This would only change if market internal skews got more negative and more persistent. So like the S&P 500, we would watch the NDX over the next few sessions and track the skew of decliners to advancers and down to up volume. As long as we don’t get ratios of 5 to 1 or better on both indicators then the likelihood of a deep retest becomes lessened. Below we look at a 31-day chart of the NASDAQ 100 for micro levels of support.



So the NASDAQ 100 is pretty cut and dry, the tone remains bullish and this only changes if the double bottom lows near 1,050 are broken.



posted by Peter Greene