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.
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