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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

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Friday, October 21, 2011

Nasdaq 100 finishes the week in the red...

Below is a 5-day 5-minute percentage comparison chart of the Dow 30 ($INDU), S&P 500 ($SPX), Nasdaq 100 ($NDX), Russell 2000 ($RUT), the Financial sector ETF (XLF), and the Chinese Financial ETF (GXC).

It shows that the $INDU finished the week up at +2%, while the $NDX finished down at -1%. Whether the Technology index is weakening as the leader of the Major Indices remains to be seen in the days and weeks to come...it's a sector that I'll be keeping a close watch on, along with the Financial sector, XLF, which finished the week well ahead of the indices with a gain of around +5.25% on the week. In contrast, the Chinese Financials ETF, GXC, finished the week down at -3.5%.

The Weekly chart below of GXC shows that price was unable to climb above major overhead resistance of 65.00.

The Weekly chart below of Copper also shows that price was unable to continue its climb from prior weeks and closed down on the week just above the 200 sma (pink) and at the Monthly Volume Profile POC.

If the Technology sector, the Chinese Financial sector, and Copper continue to lag and weaken against the Major Indices and the U.S. Financial sector next week (or weeks), it  may forecast the demise of those indices and sector...otherwise, a strengthening of these should confirm any continued advance in those markets.

Of course, the fate of the Major Indices seems to hinge on the decisions from Europe...as can be seen on the Weekly chart below of the EUR/USD, price ended the week with a small gain over last week below major resistance of the 50 sma (red) and 200 sma (pink), and price resistance around 1.4.

Furthermore, if the Major Indices and the Financials sector were to rally next week, it's important that they hold the following price levels (see 60-day 60-minute charts below):
  • $INDU = 11700
  • $SPX = 1230
  • $NDX = 2340 (needs to re-capture this price level as it's holding as resistance)
  • $RUT = 710
  • XLF = 13.00