[14 July 2024]
Today, Sunday 14 July 2024, StockCharts365.com has taken a closer look at the very important Nasdaq Composite Index (^IXIC) in the USA.
Clear technical signals have now been given that a major correction may come within a short time for one of the world's most important stock market indices, The Nasdaq Composite Index (^IXIC) in the USA.
We all know that there will occasionally be some slightly larger corrections of typically between 7-12 %, and even if the underlying trend for indices or shares can be positive.
Now the time may have come for this type of correction, and for the very important American stock market index Nasdaq Composite.
Read more about this below during today's technical analysis of the Nasdaq Composite (^IXIC).
First a little about the Nasdaq Composite Index (^IXIC)
The Nasdaq Composite (ticker symbol: ^IXIC) is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange.
Along with the Dow Jones Industrial Average and S&P 500, it is one of the three most-followed stock market indices in the United States.
The composition of the NASDAQ Composite is heavily weighted towards companies in the information technology sector.
The Nasdaq-100, which includes 100 of the largest non-financial companies in the Nasdaq Composite, accounts for over 90% of the movement of the Nasdaq Composite.
The Nasdaq Composite is a capitalization-weighted index; its price is calculated by taking the sum of the products of closing price and index share of all of the securities in the index. The sum is then divided by a divisor which reduces the order of magnitude of the result.
Technical Analysis of the Nasdaq Composite Index (^IXIC)
Technical Analysis of the Nasdaq Composite Index (^IXIC):
If we look at the weekly charts for the Nasdaq Composite (^IXIC), a clear sell signal was given in the last week from a 'shooting star' pattern in the weekly candlestick chart for the Nasdaq Composite.
What reinforces this sell signal is that the Nasdaq Composite is now both right up against the resistance level against the upper trend line in the long-term rising trend (cf. chart), and at the same time various momentum indicators (weekly charts) show a heavily overbought situation for the Nasdaq Composite.
The overall technical picture for the Nasdaq Composite now indicates that this one of the world's most important stock market indexes, the Nasdaq Composite, may be facing such a 'typical' correction which comes in at around 7-12 per cent down, and within the rising trend.
In any case, no one should be very surprised if such a correction were to occur in the coming weeks and months for the Nasdaq Composite Index (^IXIC).
According to the long-term rising trend that the Nasdaq Composite Index (^IXIC) is moving within (cf. chart), a correction down to somewhere around 16,000 - 17,000 is now being signaled for the Nasdaq Composite.
Now on Friday 12 July 2024, the Nasdaq Composite ended at 18,398.
So if there should now be a correction down towards 16,000 - 17,000 for the Nasdaq Composite, it would therefore mean a correction of precisely around 7-12 percent down from today's level at 18,398.
NB! Remember to have read and understood the disclaimer.
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