Buy Signal. Strong Market Ahead.

We have got another buy signal now that we have broken the 2840 resistance on NASDAQ Composite, COMP. On 4/18/2011 we were close to the support level at 2700, but we were never under it.

So, if you followed me and bought on the rebound and used 2700 as your stoploss level you are still in the market. Now I lift my stoploss level to slightly under 2800. It looks like we could have a very strong market ahead.

Long Trend is Up. Buy on Weakness

The long trend for NASDAQ Composite, COMP, is up. The index, now at 2771, has a resistance area at 2815 to 2840. The support areas are around 2700 and around 2600. The strength in the long uptrend indicates that we will most likely break the resistance area and continue upwards. We may first have a test on the downside and that could be a good buying opportunity, especially if you are disciplined enough to always use stoplosses to protect your capital. So, I will buy on rebound and use a stoploss if we break under the 2700 support level. If that happens I will try again and buy closer to the 2600 level and have a new stoploss point slightly below 2590.