Nasdaq- Still Holding the 50-day

Looking at the chart, the Stochs are giving a clear sell signal, and the MACD looks like it might have one more uptick left before consolidating. The upper Bollinger Band is coming down hard and is likely to provide resistance to any upside move. The 20 day moving average is down at ~2400. Volume is still weak.

So what does all this mean? I believe we must continue consolidating here to allow the overbought condition to work itself off. I continue to see support around 2430, but would not be surprised to see a brief touch upon 2400.

All that being said, the Nasdaq is holding its 50 day average, leading me to be bullish.

And here is one to watch. If you follow this blog, you know that AOI has been a favorite of mine for several months. The chart shows it is forming a bullish pennant. Volume has been strong for the entire move, leading me to believe there is more move to come.