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Stock Market Trend Analysis - NASDAQ Charts

November 10, 2011, 4:30pm ET

Technically, the NASDAQ rebounded from its test of the 2,625 area. The 200-day moving average offers resistance as does the recent high at the 2,740 area.

If the 200-day moving average remains as resistance, the market will turn down. On the other hand if the NASDAQ can push through with above average volume, a new rally might be underway.

Volume on the recent move up is below average, an indication that many investors remain skeptical.

Daily Stock Market Trend Analysis - NASDAQ Chart

The NASDAQ rebounded after testing breakout at the 2,625 area, a positive sign. However, the volume on the move up was below average, indicating many investors remained skeptical of the reason for the move.

The 200-day moving average offers resistance. The 50-day moving average offers support if it holds. The recent high at the 2,740 area might offer some resistance.

RSI is is above 50, a sign of an up trend. 

The MACD fell through its 9-day moving average giving a sell sign.

The Slow Stochastic is poised to drop through 80. When it does, we will have another sell sign.

Analysis of the 150-day moving average works well as a very good stock market trend indicator. When it's slope is positive, it indicates the market is in an up trend. A negative slope tells us the market is trending down. The slope of this moving average is neutral telling us the NASDAQ is in a transition point.

If the NASDAQ holds on any retest of the breakout, the next resistance level is the 2,880 area. Monitor the volume on any moves up or down.

Hourly Stock Market Trend Analysis - NASDAQ Charts

On the hourly chart, the NASDAQ rebounded through the 2,650 area. The rising trend offers support, while the recent high provides the next resistance level.

The RSI is above 50 a sign of an up trend.

The MACD rose through its 9-hour moving average giving a short-term buy signal.

The Slow Stochastic is nearing 80, a positive sign for the market short-term.

The indicators are telling us the NASDAQ is turning up on a short-term basis.

Link to current version of 60-minute S&P 500 chart, requires a subscription to stockcharts.com basic service. Trading Online Markets LLC does not receive any compensation from stockcharts.com.

Stock Market Trend Analysis - Shanghai Stock Exchange Index

The Shanghai Index was in a symmetrical triangle.  The test of support at the recent low in the 2,360 area held and the index is rallying. The descending trend offers resistance that is holding.

However, the 50-day moving average crossed down through the 200-day moving average, a sell indicator.

The RSI is above 50 a sign of an up trend.

The MACD rose through its 9-day moving average giving a buy sign. 

The Slow Stochastic rose through 20 giving another buy signal.

The Shanghai Stock Exchange Index is a leading indicator as it reflects the local market's view of China's economy.  What is interesting is the SSEC tends to turn down or up before the S&P 500.  This makes sense as the SSEC follows the Chinese economy more closely.  If there is a perception that China is slowing, we will see it in the SSEC first.

Keep in mind the SSEC is a volatile market that moves quickly either way.  Use it to identify important trends that give an early indication of the direction of the S&P 500. 

The indicators are telling us the Shanghai index is trying to rebound. This means we should expect world markets to try to move up as well.

You can link to the current version of the chart with the link below.

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