NDAQ Daily Chart – April 20, 1009

The last time I posted a chart of NDAQ I said it was ready for a bounce.  It opened that day at $18.80 and eight days later topped out at $22.61.  I charted NDAQ at 2:41pm on April 20, 2009 when it was trading at $18.41.  This chart is all about Williams %R and trend lines.

• I highlighted with blue lines the last four times (before doing it again today) over the past six months when NDAQ was touching the -100 line on oversold for Williams %R. 
• NDAQ is touching is five month trend line of slightly lower lows
• NDAQ is trading below its 10, 20 and 50 day moving averages
• The trend line of NDAQ’s lower highs is falling faster than its trend line of lower highs

Opinion = Based on NDAQ’s previous reactions to hitting such a low spot on Williams %R I think it’s ready to bounce again.  Each bounce gets lower, so this could/should be a quick trade.  Since all trends eventually break I suggest waiting to see some sign of life off the bottom before getting in.  That could be as soon as this afternoon or tomorrow.  NDAQ typically spends two to three days on this bottom line, so tomorrow or Wednesday is more likely.  That gives time to see if it holds support around $18.35 – $18.40.