http://stockcharts.com/h-sc/ui?s=$COMPQ&p=W&yr=3&mn=0%20&dy=0&id=p32126491789&a=88028528&listNum=-2 (please cut-paste the above link into the bar as this website does not accept the entire link for some reason) - I have created a weekly technical chart of the Nasdaq Composite going back to 2004. - My prediction is that the Nasdaq will most likely consolidate within the current range. It may briefly make a new top, however, I do feel that the top was made at 2508.93 - If the pattern continues, then the index will make a classic V-Bottom. The bottom will be made in the 2100-2300 range before turning around. - The trend is generally up and does not mean the start of a bear market, however, the seasonal pattern remains consistent. The seasonal pattern dictates a correction to the bottom line. - Please keep in mind that the technical chart spans 3 years. 1 candlestick is 1 week of time. - The reasons why I feel a top was made at 2508.93 is because the Apple IPhone introduction had artificially propped up the index at the start of the year. Companies usually deliver conservative guidance and a percentage will even disappoint during the first of the year conference calls. This will ultimately lead to generous sell-offs of the common stock. - Great conference calls that did not seem to work out this week: -GE- Down over 2% -IBM- Down over 3% -AAPL- Made an intraday high of over 99 dollars and now trades at 88.50, 12% off that high in a few days. -CAL- Traded at a high of 51 dollars and then the conference call comes, closes at 48.13 on Friday. 6% loss - Bad conference calls that resulted in a great selloff: -CWTR- Down over 18% -RACK- Down approximately 50% Conclusion- We are entering a period where the overall market appears tired and the seasonal factors dictate that a correction to the bottom-line will occur. Any bad news will be followed by significant sell-offs. Even good earnings calls that beat the street's estimates may be followed by modest sell-offs. Investors and traders should exercise caution during this time and know that the theme that worked last year may not work this year. Dr. Michael Roberts www.marketbarometer.blogspot.com