Today is April 19, 2006

Our current signal is BUY

This signal was initiated after the close on June 27, 2005

Tonight we are going to be showing the same annotated charts we have been for weeks. Our current stock market outlook is the same it has been for months. After running our long-term system tonight, we could see that we are far from a long-term signal of sell. The system is detecting a neutral market, not even close to being overbought. Of course as we have said many times before, this can change pretty quickly, but we would need a string of powerful days to create an overbought market. The indices have been trendless and consolidating for most of 2006. We believe that the NASDAQ Composite and S&P 500 will be breaking out very soon and a strong leg (probably the final leg of this move) will begin.

The first chart is of the NASDAQ 100. You can see how the NASDAQ 100 broke above its right shoulder again on Tuesday and we feel that the possible head and shoulder formation is now invalidated. Soon the NASDAQ 100 will push to the 1750 area, before a short-term pullback and then a surge to new 2006 highs.

The second chart is of the S&P 500. You can notice how the S&P 500 is back to the 1310 resistance. Any short-term weakness should find support above 1297 and soon the S&P 500 will also be at new 2006 highs.

The third chart is of the Russell 2000. You can see how the index bounced off the uptrend line again and remains in the same trend channel it has been in since October. Resistance will not come until the index runs into the higher uptrend line, around the 800-810 area.

The final chart is of the NASDAQ Composite. Any short-term pullback should leave the index above the 2325 area. A move above 2375 should push the NASDAQ Composite significantly higher.

Take Care,

Stephen Brown
Founder of Nasdaq Wizard, LLC