Stocks have made another attempt at a comeback within the past two-hours of trading as the NASDAQ Composite (COMPX) 1,499.76 +0.16% has edged into positive territory after spiking below the lower end of its downward regression. The 1,500 level has been serving as psychological resistance and a push higher from here may be stalled as bulls may be hesitant to carry any new position over the weekend.
NASDAQ Composite Index Chart - Daily Interval
The NASDAQ Composite (COMPX) spiked well below the lower end of our downward regression this morning, and most likely found some bears locking in gains. We can perhaps see how the 1,500 level served as psychological, yet technical resistance back in September/October of last year, but the bold break higher signaled a turning point for a spring rally. A further break higher of 80.9% retracement of 1,545 did serve as support late last year.
Based on that action, bears will be monitoring future trading against last fall's trading. For now, traders will most likely look for a break above the 1,545 level as a sign of renewed bullishness in the NASDAQ Composite and be monitoring Treasuries for any sign of cash rotating back out of bonds, that could further a move higher.
This coupled with earlier observations made today regarding the Dow Industrials (INDU) 9,437 -0.67% achieving its bearish vertical count are some alerts that bears should be protecting gains and willing to lock in some profits on stocks that are technically overextended to the downside or have themselves achieved bearish vertical counts.