Sunday, August 10, 2014

Bulls on Defense

The Nasdaq is in a state of contraction and the bulls are on defense as this index attempts to defend its 10-week ema.  The High-Low Index (http://scharts.co/IuSfO4) shows the Nasdaq is struggling to regain its footing and the coming week will be critical if the current long term uptrend is to remain intact.  While the short term indicators remain in oversold conditions, the longer term term indicators suggest further downside risk exists should the bulls fail at current price levels.