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NASDAQ Composite has chance at 2,255

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The NASDAQ Composite (COMPX) is probably acting stronger recently than at any point since October of 1999. One thing I've noticed is that this index hasn't been crushed into the ground when it recently rallied from the lows of 1,619 to 2,200. It's been quite sometime since the COMPX has been able to fight back to the upside and now looks like it wants to try and test the 2,255 level.

NASDAQ Composite Index Chart - 60-minute interval

A daily interval bar chart with a retracement bracket attached from a relative high of 2,892 and the recent low of 1,619 gives hint that the COMPX could achieve the 2,255 level in the near term. Today perhaps marks one of the first times in recent history that the COMPX has been able to battle back and get back above a downward trend. First test to 2,255 comes at the April 20th high of 2,202. April 20th was option expiration for April options and looked to be a short-term level of resistance perhaps brought on by option expiration. With the bullish percent reading for this index at 46% there's some upside there too. In February, the bullish percent for the NASDAQ Composite reached 54% before turning lower to an April low of 30%. Another reading of 54% would correlate nicely with a NASDAQ Composite Index reading of 2,255. You can view a bullish percent chart reading of the NASDAQ Composite at www.stockcharts.com by typing in the symbol $BPCOMPQ.

Jeff Bailey
Senior Market Technician

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