Technical support was tested on the NAZ in April since it broke its 1-year uptrend in late March. The vital level to watch is for 4000 to hold on this index – as indicated by my dashed red line on the chart. The index can be considered a technology-heavy one, and seasonal strength cycles tend to end for that sector in late January or February.
We’ve been peeling some of our exposure to technology out for a month now, and don’t expect to be as aggressively positioned in it for a while yet. Investors who are long an index stock for the NAZ, or are a little tech heavy, will want to consider taking some exposure off of the table—especially if the 4000 level is taken out.
Technical analysis seminar tomorrow evening in Guelph, Ontario with Keith Richards:
Guelph Public Library Main Branch, 100 Norfolk Street, Guelph, ON, N1H 4J6. Tuesday May 6, 2014, 7PM
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