2007-3-20 2007-3-20 The NASDAQ Composite has been in a sideways pattern for several days. If the index does not break above this pattern in the coming week it will break through the lower uptrend line in the trend channel. The recent action suggests that the NASDAQ is in the process of creating another base or trend channel and breaking away from the channel that started in August. This kind of sideways action is rarely seen in a trend channel. Most likely a new base is beginning to be formed. A break above the recent sideways movement would push the NASDAQ above 2006 highs, while a pullback should bring the index to the 2300 area. 101694 text/html http://www.nasdaqwizard.com/midweek102506.html 1.0 EN index,follow The NASDAQ Composite has been in a sideways pattern for several days. If the index does not break above this pattern in the coming week it will break through the lower uptrend line in the trend channel. The recent action suggests that the NASDAQ is in the process of creating another base or trend channel and breaking away from the channel that started in August. This kind of sideways action is rarely seen in a trend channel. Most likely a new base is beginning to be formed. A break above the recent sideways movement would push the NASDAQ above 2006 highs, while a pullback should bring the index to the 2300 area. text