Investment World
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Commentary
Nasdaq: Uptrend in force
B. Krishnakumar
AFTER a relatively subdued beginning, the market sentiment at the American bourses improved as the week progressed. Flow of weak economic data coupled with earnings warning from Home Depot affected market sentiment on the first two trading days of the week.
The subdued trend reversed with the flow of improved financial performance from technology companies such as Hewlett-Packard and Analog Devices. As a result, the three benchmark indices closed the week on a positive note.
The Nasdaq Composite Index has moved past the resistance level of 1450 that has been referred to in previous weeks. However, the recent rally from October low does not appear too convincing. It appears more like a bear market rally rather than the commencement of a fresh bull run.
The overall bearish trend would re-establish itself once the index completes the current short-term uptrend. The immediate resistance for the index is placed at the 1530-1560 range. The index could resume the downtrend probably after touching this resistance band.
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