NYSE Composite (NYA.NDX)

Short term

An approximate horizontal trend channel in the short term is broken down. A continued weak development is indicated, and the index now meets resistance on possible reactions up towards the trend lines. The price has had a strong fall after the negative signal from the rectangle formation at the break down through the support at 18837. The objective at 17664 is now met, but the formation signals further development in the same direction. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the index has resistance at 18950 points. Volume has previously been low at price tops and high at price bottoms. Volume balance is also negative, which strengthens the trend break. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the short term.

Recommendation one to six weeks: Negative

Medium term

NYSE Composite has broken the rising trend channel in the medium long term and reacted strongly down. For the time being, it is difficult to say anything about the future trend direction. The price has had a strong fall after the negative signal from the double top formation at the break down through the support at 18958. The objective at 17737 is now met, but the formation signals further development in the same direction. The index is between support at points 17400 and resistance at points 18300. A definitive break through of one of these levels predicts the new direction. Volume has previously been low at price tops and high at price bottoms. Volume balance is also negative, which weakens the index. RSI below 30 shows that the momentum of the index is strongly negative in the short term. Investor have steadily reduced the price to sell the index, which indicates increasing pessimism and continued falling prices. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

NYSE Composite has broken through the floor of a rising trend channel in the long term. This indicates a slower rising rate at first, or the start of a more horizontal development. The price has had a strong fall after the negative signal from the double top formation at the break down through the support at 18958. The objective at 17737 is now met, but the formation signals further development in the same direction. The index is testing support at points 17200. This could give a positive reaction, but a downward breakthrough of points 17200 means a negative signal. Negative volume balance shows that volume is higher on days with falling prices than days with rising prices. This indicates decreasing optimism among investors. The RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically slightly negative for the long term.

Recommendation one to six quarters: Weak Negative