A Wave of Support Rolls in Lifting Stocks

The stock market put in a beautiful bounce off support levels showing this uptrend still has legs left.  Our uptrend remains and we continue to find impressive longs.

Rather than talk about the NASDAQ let’s take a look at a chart:

Options expiry on Friday may be the culprit for elevated volume this week, but if we can add onto gains the weekly chart of the NASDAQ will look even prettier.

I have yet to show a Point and Figure chart of the NASDAQ in 2010 and I will do so tonight:

Once again the NASDAQ is forming a flag, but notice how tight it is this go around.  This is what you want to see in a Point and Figure chart.

Last night I eluded to some interesting action in the VIX.  Specifically Monday and Tuesday’s action looked very odd.  Today, we certainly were able to see this repeat.  The inability for the index to close out near its highs is certainly signalling the lack of conviction on the part of sellers.

Our uptrend remains intact and with the limited amount of professional selling on the NASDAQ its most recent high appears the index will not encounter much resistance.

Enjoy