Day by day more resistance levels continue to drop. Today the Nasdaq is trying to take out two more.
Nasdaq-100 Daily Chart
After pausing for two days, the triple Qs have made an assault on the May downtrend and 50% retracement level at $42.80. Whether they can close above that level remains to be seen. The tracking stock is off its highs, and the Biotechnology Index has dropped into negative territory. Assuming it can, a race sets up to take out the 50-day moving average before the stochastic rolls over.
Cisco Point and Figure Chart
After flashing a sell signal last week, Cisco (NASD:CSCO) has proceeded to take out the bearish resistance line. Today the stock climbed another box, and is ready to give another buy signal at $21. Part of this run is being driven by rumors that Cisco will meet or beat estimates, and they are starting to see an up tick in orders.
Amgen Daily Chart
Amgen (AMGN) lost the bullish support line back in July, but demand is trying to take back control by flashing a buy signal recently. The stock has room to move two boxes higher before it runs into the bearish resistance line.
Microsoft Point and Figure Chart
Rather than testing resistance, Microsoft is clinging to support. The stock is currently on a sell signal, and has dropped down to the bullish support line at $66. The stock is trying to bounce off support, but the attempts over the past four days have been less than impressive.
The fade into the close continues, with the Dow now in negative territory. The selling in retail and biotechnology stocks has picked up, and banks and insurance stocks have dropped into negative territory.