Weakness Hound Sniffs NASDAQ ~ The Risk Averse Alert

Tuesday, August 13, 2013

Weakness Hound Sniffs NASDAQ

Rather precarious does NASDAQ's underlying technical state appear at the moment. There's increasing weakness revealed, and this, curiously, while NASDAQ's Composite prints at its best in a decade plus.

If nothing else, NASDAQ's levitation in a tight range over the past week and a half appears an uncompleted corrective wave, while an imminent, violent retreat, a subtly foreboding underlying technical state likewise warns.

Not to ignore positive developments into July, we likewise see negative divergence (indicating underlying weakness) at NASDAQ's early-August peak. Thus, positives more immediately are diminished.

Moving to the present, the question becomes whether seriously fading leadership (seen sunken below its measure's 200-day moving average) bringing NASDAQ's Composite today a shade below its best print in over a decade opens the door to a heart attack, if not wrenching heartbreak, as well?

Word on the Street
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