Today is April 5, 2006

Both the S&P 500 and the NASDAQ closed at five year highs tonight. Our 401k allocation is also at a new high, up nearly 20% this buy signal. Tonight we have charts of the NASDAQ Composite, QQQQ, and the S&P 500.

You have seen all of the annotations on the NASDAQ composite chart before. The blue uptrend line represents the top of the trendless market. You can see how the NASDAQ broke above the 2240-2250 area back in late November, and how the index is currently about 5% higher. The horizontal lines represent the recent consolidation in the NASDAQ Composite and you can see how the NASDAQ broke above this consolidation last week. As we have mentioned a handful of times before, we believe the indices will break above the trendless market at least 10%, probably more, before our system triggers a long-term signal of sell.

The second chart is of QQQQ and you can see how the 40 area was the top of the trendless market in the Qs. In early November, QQQQ broke above its 40 resistance and currently the ETF is a little over 6% above the breakout. We believe that the Qs will climb above the 40 area by at least 10% before a long-term sell is triggered, just like with the NASDAQ Composite.

The last chart is of the S&P 500. You can see how the S&P continues to stay above the blue uptrend line and how the index closed at the top of its recent consolidation today. This suggests that the breakout will be north and a new uptrend will begin.

Our long-term system is far from being overbought. This new uptrend is just beginning.

Take Care,

Stephen Brown
Founder of Nasdaq Wizard, LLC