Sunday, May 31, 2009

Point and Figure Charts on Dow, Nasdaq, S&P500 Are Cheerful

After a scary long-term Dow chart below, how about burying our heads in the sand and look at some cheerful little things? These are daily Point and Figure charts of Dow, Nasdaq, and S&P500. Whatever you think of overall economic fundamentals or geopolitical risks, the charts are pointing to a significant breakout.

Both Dow and S&P had a double-top breakout, Nasdaq had a triple-top breakout. The price objectives on the daily charts of Dow 8,650 and S&P 935 look achievable, while Nasdaq's price objective looks rather steep at 1,950. But Nasdaq has been outperforming the other two, so this may not be far off the mark.

But here's a shocker: WEEKLY P&F charts. Take a look at this. It's weekly Nasdaq P&F chart. The price objective is 2,780. Do you remember the last time Nasdaq was that high? I didn't, so I looked. November 6, 2007. Nasdaq topped on October 31.

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