AMEX Composite (AMEX.NDX)

Short term

AMEX Composite has broken the rising trend channel in the short term and reacted strongly down. For the time being, it is difficult to say anything about the future trend direction. The index has broken down through support at points 4650. This predicts a further decline. In case of positive reactions, there will now be resistance at points 4650. 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 short term.

Recommendation one to six weeks: Negative

Medium term

AMEX Composite has broken the floor of the rising trend channel in the medium long term, which indicates a weaker initial rising rate. The price has broken through the floor at 4795 of a rectangle pattern. A decisive break will signal a further fall to 4405 or less. The index has broken down through support at points 4650. This predicts a further decline. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

Investors have paid higher prices over time to buy AMEX Composite and the index is in a rising trend channel in the long term. Rising trends indicate that the market experiences positive development and that buy interest among investors is increasing. The index is moving within a rectangle formation between support at 4457 and resistance at 5578. A decisive break through one of these levels indicates the new direction for the index. The index is testing support at points 4600. This could give a positive reaction, but a downward breakthrough of points 4600 means a negative signal. The RSI curve shows a falling trend, which is an early signal of a possible trend reversal downwards for the price as well. The index is overall assessed as technically positive for the long term.

Recommendation one to six quarters: Positive