The Gilmo Report

January 12, 2022

January 12, 2022 7:32 pm ET

I was looking for the NASDAQ Composite Index to test of its 200-day line as I wrote over the weekend, and that’s precisely what we saw on Monday. After breaking below the line early in the day, the index was able to hold support on a shakeout at the 200-day line and then rally to post an undercut & rally (U&R) move through the two prior December lows.

That set off a wedging rally that reversed today at the 10-day simple and 20-day exponential moving averages. So far, all we’re looking at here is a three-day reaction rally off the lows which occurred in logical fashion as the index shook out at the 200-dma and pulled a U&R through the December lows.

 

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