NASDAQ and “Big Five” 6-13-17

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EOM Technical and Trading: NASDAQ and the “Big Five”  6.13.17

For today’s analysis, I designed two charts to help determine market direction and trading opportunities.

Chart one shows the 2017 performance for the major US Indexes including market capitalization. 

Key Points…

1.  NASDAQ is leading followed by $SPX then $INDU
2.  Large caps are leading followed by the small caps then mid-caps
3.  For large caps, I use $OEX, the S&P 100


Recently, the media has been obsessed with selling in tech. This chart shows the NASDAQ Composite and the “big five,” helping to move the market. 

Why the importance?

Many traders will use this group as a “canary in the mine,” so to speak, to help signal the next market pullback.  

Key Points…

A.   NASDAQ features the 65 EMA and trendline support
B.   FB features the 20 SMA
C.   AMZN features the 20 SMA
D.   GOOGL features the 20 SMA
E.   MSFT features the 20 SMA
F.    AAPL features the 20 SMA

Action Points…
A.   Blue trendline shows short-term support
B.   Red trendline shows longer-term support
C.   Previous 65 EMA violation brought a 3.2% pullback
D.    A similar 3% pullback from the 65 EMA is indicated
E.    Previous pullback (blue oval) from the “Big Five” is highlighted   
F.     Current action (green oval) is also highlighted
G.    Each featured moving average represents current support
H.    Once a moving average is violated, use the Simple Simon for buying/selling decisions.

Enjoy your week!

David O. England 

Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

If you have a question or comment, contact David England at

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