COMP More Sell Signals To Come?

Nasdaq Composite index, COMP, has given several sell signal in recent weeks.

COMP breached several key support levels and it is now testing another important level at 2890.

If COMP falls below 2890 the next important level of support is at 2750.

Meanwhile, Apple is close to its crucial support level at 550-560. If Apple breaks that level will probably COMP almost certainly go below the 2890 level of support.

S & P 500 We Are Going Down..

S & P 500 has previously received sell signals and we assess the risk that large that the index should go down to at least about 1300 sooner or later.

The U.S. large-cap index, the S & P 500 went up last week by a marginal 0.6% and has thus risen by 9.6% this year.

S & P 500, which at this moment is in at 1378.53, has recently gained a lot of sell signals, and also shows other signs of weakness. The stock market has also entered a more volatile phase which means we can expect sharp changes both up and down on the S & P 500.

We are also in the middle of reporting season, which also contributes to individual stocks can move dramatically. Tomorrow after the close of trading, for example, Apple with its report, which can affect the stock market mood a lot. See also our analysis of Apple on April 17.

With today's poor purchasing managers report from Germany and the weak stock markets in the rest of the world S & P 500 will probably start the week with a serious downturn. We will now see whether the index will test support levels at 1358-1363 and 1340.

I have for some time aimed for S & P 500 to go down and test 1340 and most likely also the support level at 1 295.

In order to get some clearer buy signals S & P 500 has to close above the resistance at 1393 but above all the one at 1 422. It lokks like, however, that it will be relatively difficult for the S & P 500 to go over these levels in the near future.

The long trend for the S & P 500, defined as the slope of the 200-day moving average curve, is in itself upward, but the short-term trend is downward.

Stochastic and MACD indicators don´t invalidate the finding that there is a high risk on the downside for the S & P 500. Stochastic showed for example that the previous upward trend was significantly weakened in its final phase. This was the clear negative divergence against the index development.

I will therefore continue to try to go on S & P 500 on any upward move. Especially when the S & P 500 will come near any of its resistance levels. I will aim for a decline to 1340 in the first place and about 1300 secondary. Stop loss on the S & P 500 closes above 1 422 I will also move the stop loss down as the position shows a profit.

Then the S & P 500 is likely to remain volatile and swing a lot of up and down, it opens up for many great trading opportunities for the active investor.

If you use short-term strategies, it may therefore be a good idea to take home profits from time to time on short positions. Then you can go short again on upward moves in the market.

AAPL Sell Signals!

AAPL, Apple Inc, has got sell signals.

AAPL has broken its uptrend and has broken the support levels around 600-617. Now we are at the very important support level at 578. If AAPL break that level the stock looks like it could go pretty far on the downside.

AAPL also has important support levels around 548, 516, 487 and 428. I can´t rule out that AAPL may test the 428 support level sooner or later.

I will short AAPL on any upward move. Stop loss if close over 617.

S&P 500 Sell Signals

S & P 500 has received sell signals and is now in a downtrend. I will use rebounds to go short in the market.

S & P 500 has recently slipped from its previous upward trend. Instead, the S & P 500received lot of sell signals and other signs of weakness. Last week also resulted in a decline of 2% for the S & P 500.

So far this year, however, the S & P 500 has risen by about 9%. S & P 500 has also now entered a more volatile phase than earlier in the winter. This tendency for more volatility will probably be strengthened as we come into an intensive companies reporting period.

The long trend for the S & P 500, defined as the slope of the 200-day average curve is slightly upward. The short-term trend is, however, since last week downward.

Stochastic indicator shows that the market is oversold. The market may be oversold for a long time if it got into a strong trend so it's not a buy signal in itself. This indicates, however, that the S & P 500 is now relatively easy to get up recoil. These smaller gains can then for example be used to enter short positions at more favorable levels than otherwise.

S & P 500 got sell signals when the index broke an uptrend line that gave support at about 1400 and when the index went below the support levels around 1387 and 1378. Previously, the S & P 500 also had a negative divergence in the Stochastic indicator that strengthen the signal value of these sell signals.

We are now aiming for that S & P 500 sooner or later should test the support level at about 1340 and probably also the one at 1295.

Should the S & P 500 now would bounce upwards the index has resistance at about 1378, 1387 and about 1422. The psychological level of 1400 could also be considered as a resistance level.

For the S & P 500 to get some stronger buy signal in this mode, the index have to close above the resistance level at 1 422.

Then the S & P 500 is likely to be more volatile and swing a lot of up and down, open it up for too many good trading opportunities for the active investor.

If you trade with short-term strategies, it may therefore be a good idea to take home profits from time to time on short positions. Then you can go short again on upward recoils in the market.

COMP Several Sell Signals!

NASDAQ Composite Index, COMP, has broken both the support level at 3037 and the one at 3000. Before that, the index also broke the uptrend line. So COMP has now had three sell signals. It is also gone under my stop levels for all long positions.

I am now short in the market. I will now use any upward move to go even further short on COMP. My first target will be the support area around 2890-2900, and my second target will be the support level at 2750. Stop loss if COMP closes above 3060.

Stochastic has shown negativ divergence compared to COMP. That is a sign of weakness upon the uptrend. Stochastic is now in an oversold area, but it can remain oversold for a longer time if the market is in a strong downward trend.

COMP In Upward Trend. Monitoring 3037..

NASDAQ Composite Index, COMP, is in an upward trend. When COMP broke above the resistance level at 3000 it got a buysignal. I have a stop loss for my long positons if COMP closes under 3000. If it closes below 3037 will be the first sell signal. So that is also a good stop loss level. I will in a few days move up my stop to that level. If COMP gets a sell signal, the market can be also volatile. VIX index is now at very low levels. That suggests that most investors are unprepared for large declines.

AAPL - Apple Is Near To Get A Sell Signal

Apple sees clearly weaker in the charts nowadays. Apple has slipped from its upward trend and are now at risk to get a sell signal if it falls below support at about 513. Stochastic and MACD indicates that the upward trend has weakened considerably. If Apple breaks the 513 support level the next level of support is at around 486. But if Apple gets the sell signal there is a high risk that the stock is also going to test the strong level of support down at about 430.

COMP - Sell Signal!

COMP broke the 2940 support and gave a sellsignal. We are still over the 2888 supportlevel but I have closed all of my long positions. Now I am a little short in the market and will go even more short if COMP comes closer to 2940. 2940 is now a resistance level. Stop loss if COMP closes above 3000.

COMP in Uptrend. But Watch Out if Below 2 940!

We have had several buy signals in the NASDAQ Composite Index, COMP, in recent months. Now COMP have given several warning signs that the uptrend weakens. We have a negative divergence in the stochastic indicator, and a sell signal in the MACD. If COMP closes below 2940, we get a sell signal that I will take very seriously.

COMP - Watch Out

If COMP closes under the 2 890 support level I will sell my longs and go short. It looks like we had a key reversal day yesterday. If COMP goes above 2 958 that signal is cancelled out, but if not and if we closes under 2 890...

Well, then I am want to be out of my longs and loaded with shorts!

COMP - More Buy Signals. But Is It Only A Bear Market Rally?

We got more buy signals at the NASDAQ Composite Index, COMP, when it closed above the resistance at 2 890. See the long chart in previous blog post.

I continue with my long positions, but I move my stop up to 2 829. We have an important trend line which provides support around the horizontal support at 2 834. I do not want a closing below that level.

It is a very real risk that this up move is just a big bear market rally. If so, the downward movement could become dramatic.

So, because of that I want to dance close to the door.

Stockmarkets Move Up. Heavy Resistance Soon.

The stockmarkets continue to show strength. How far will we go? There are heavy resistance at the 2 890 level on COMP. See the monthly chart attached.

Even More Buy Signals

NASDAQ Composite Index got even more buy signals now that it managed to break the resistance level at 2 750.

Now we rapidly move against my goal around the 2 888 resistance area.

Buy Signals in COMP

NASDAQ Composite (COMP) is moving higher. We have got several buysignals.

Stochastic is on a high level, but in this kind of market COMP could continue to rise in spite of that.

Now it looks like COMP could go up and test the resistance area around 2 888. It looks though like this is a bearmarket rally, so I will trade with close stops.