Today is March 22, 2006

As the Dow Jones Industrial Average, Russell 2000, and S&P 500 are near multi-year highs, we can feel very confident that the long-term trend is still up. The NASDAQ Composite has not broken to new highs yet, but we feel it is only a matter of time before the index hits multi-year highs as well. Our long-term model follows the NASDAQ Composite more than any other index, so the NASDAQ action is of highest importance to us. It is true that the NASDAQ 100 and Semiconductor Index have greatly underperfomed the other indices recently, but as our model relies on the NASDAQ Composite, and as this index is still bullish, we are not really concernced about the weakness in technology. This underperformance may suggest a top is coming in the other indices, but until our model tells us that a top has been reached, we can only assume continued strength in the overall market.

The first chart below is of the NASDAQ Composite. You can see how the NASDAQ fell to one of our support lines today. If the NASDAQ does break this support line, we can assume a push back down to the black line. The NASDAQ has been in a consolidation period for nearly three months. We feel the break will be higher and as long as the NASDAQ stays above the support line right below its low today, we can assume that in the next few days, the NASDAQ will breakout.

The second chart is of the S&P 500. This index pulled back to its breakout point yesterday and so far has found support there. The S&P is still above its uptrend line and we feel if the index does break its support line, it will find support at the uptrend line. This chart looks very bullish.

The last chart is of the Russell 2000. This index is right below all-time highs. It is well above the uptrend line and the chart looks very healthy and bullish.

Take Care,

Stephen Brown
Founder of Nasdaq Wizard, LLC