Technology Sector Review: 10/7/24
"Handling" Its Business: The Nasdaq continues to ascend and it feels if as the bears have had ample time to push this lower. Of course, they did with a 4-week losing streak between the weeks ending 7/19-8/9 that slipped 16% from top to bottom of the range. Notice that the week ending 8/9 did record a bullish counterattack candle off the 50 WEEK SMA to give a clear indication that a short-term bottom was in place (and the doji candle the week ending 7/12 should have had bulls shaving partial longs). And the bears gave it yet another shot with the 6% haircut the week ending 9/6, and the bulls put up a strong defense with the very next week gaining it all back and then some. Bears must be feeling irritable at this point. On the daily chart below, one can feel the air coming out the naysayers sails with a nice bounce off the upward-sloping 21-day EMA, and now a handle, hence the "handling" its business reference, has formed on a cup base that commenced with the nasty bearish engulfing candle on 7/11. With everyone talking big round numbers now on the S&P 500 with 6000 targets, why not a 10% move for the Nasdaq into year-end here with a 20000 objective. With sizable gains YTD, as the S&P 500 is higher by more than 20%, October can be volatile, but Q4 overall tends to be very strong as the Almanac Trader shows here.