With three months into the most recent signal of buy, we can truly understand the effects of a stock market with low volatility. The NASDAQ 100 is barely higher than it was three months ago, the Semiconductor Index is a few percent lower, and the Russell 2000 is around 6% higher. Not great, but with volatility being as low as it currently is, 6% in three months sounds huge! Our system came extremely close to trigerring a sell signal on April 6th. If it did trigger a sell, we would have had a buy signal three trading days later on April 11th. This suggests that the current correction is nearly done. Tonight we have charts of the NASDAQ 100, SMH, IWM, and the S&P 500.

The first chart is of the NASDAQ 100. You can see how the index did not find support at the horizontal line that formed the top of the ascending triangle. Therefore, we have added another support line in the 1675 area. As long as the index stays above 1635, we can assume that the mid-term trend is still up. There is additional support in the 1660-1665 area. It is not shown on the chart.

The next chart is of SMH. You can notice how the ETF found support at the line we added last week. If SMH does break the 36 support, we feel the ETF will find support at the 35.50 area.

The Russell 2000 (chart three) is still above its uptrend line. As long as the index stays above this line, we can assume that the mid-term uptrend is still up.

The final chart is of the S&P 500. You can see how the S&P 500 is currently sitting at support as well. 1280 is very strong support. If the index falls below that level, it should find support around the 1270-1275 area.

As stated in the first paragraph, there is currently little volatility in the stock market. In times like these, patience is necessary.

Take Care,

Stephen Brown
Founder of Nasdaq Wizard, LLC