Monday, September 28, 2015
COMPQ Nasdaq Composite Daily Chart Prints Death Cross Chart Pattern
The Nasdaq finally joins the SPX, Dow and Russell 2000 small caps printing a Death Cross chart pattern where the 50-day MA stabs down through the 200-day MA and signals continued weakness for days, weeks and months ahead. Typically, since it takes a lot of downward price action to send the 50-day moving average lower, price will bounce as a death cross occurs. However, as long as the 50-day stays under the 200-day, stocks are in serious trouble. In the near-term, look for a potential bounce and recovery move but price would be expected to roll over again and move lower for the weeks and months ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.