Thursday, August 14, 2008

August 14, 2008; Nasdaq Weakness Could be Good Signal

I noticed this morning that the Nasdaq futures chart on the 1 hour+ timeframes is showing a huge bearish divergence on the MACD especially, but also the stochastics. Plus, the Nasdaq is getting real close to the June highs. This tells me the Nasdaq is about to roll over soon. And that should lead the blue chips down as well.

Look for Nasdaq weakness compared to the blue chip S&P and Dow. Once the Nasdaq starts underperforming those indices, it may be the first sign of a top and reversal.

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