Nasdaq 100 fails to test previous resistance line.
The enclosed daily chart of the cash Nasdaq 100 (NASDAQ: NDX, Stock Forum) shows that the 8/15 rally peak at 1,973.56 and the subsequent decline back beneath 1,890 appears to represent a (failed) test of the major October-August resistance line, a reversal from that down trendline to beneath the declining 200 DMA, and a return to test important near-term support at 1,870.75 created during the July-August (near-term) bottoming period. All of this has bearish price implications for the NDX and holders of the Qs ETF, PowerShares QQQ Trust (NASDAQ: QQQQ, Stock Forum). Inability of the NDX to hold at or above 1874 (also the coordinate of the declining 50 DMA) will be a very negative sign technically and will point prices towards a test of 1,800 sooner or later.
Stockhouse Conflict and Disclosure Policy:
Stockgroup Media Inc., owners and operators of Stockhouse.com, has established the following rules to ensure that there is no appearance of impropriety on the part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse Editorial articles (the "Articles") are the opinion of the Writer and any reliance on the content of these articles is at your sole risk. Our Writers are not registered investment advisors. You should not make any kind of investment decision in relation to Articles or stocks discussed in them without obtaining advice from a registered investment advisor.
Facts relied upon by our Writers are generally provided by the subject companies or gathered by our Writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Writers may be materially different.
Writers may own, buy, or sell shares in public companies mentioned in their Articles, but in the Article they must prominently state their ownership position. Thus, a conflict may exist. Writers are not permitted to write Articles that attempt to benefit persons connected to the Writer, such as family or friends, except where disclosure is made in the same way as if the Writer him/herself owns stock.
Writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their Articles.
Stockhouse notifies each Writer about these rules, and we rely on the integrity of our Writers to ensure that our rules are followed.
