NEW YORK (TheStreet) -- The Federal Reserve-induced stock-market bubble continued to inflate on Thursday as the Nasdaq Composite Index traded as high as 5,143.31, which was above the prior all-time intraday high of 5,132.52 set on March 10, 2000.

The monthly chart below shows the prior bubble and the new bubble and the key levels in between.


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The green line on the monthly chart for the Nasdaq is the 120-month simple moving average, which held at the low in November 1990. After setting an all-time intraday high in March 2000, the Nasdaq crashed back to the 120-month SMA, which can be considered a long-term "reversion to the mean." The moving average followed the up-and-down volatility between September 2001 and July 2010, when the re-inflation of the Nasdaq bubble began. The 120-month simple moving average is now at 2,843.82.

The Nasdaq 100 as measured by the PowerShares QQQ Trust ETF (QQQ) - Get Report has not yet reached a new high.

Here's the daily chart for the QQQ Trust ETF.


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The QQQ Trust ETF traded as high as $110.88 on Thursday, which is well above its 50-day and 200-day simple moving averages of $108.93 and $104.20, respectively. The year-to-date high for the exchange-traded fund is $111.16 set on April 27.

Here's the weekly chart for the QQQ Trust ETF.


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The weekly chart is not yet positive. If the fund sets a new high, it would likely shift to positive. If the fund ends this week above its key weekly moving average of $109.28 with rising momentum, the weekly chart would be positive. The weekly technical momentum reading is projected to be 77.85, which is slightly below 77.96, the level on June 12.

Investors not familiar with technical analysis should begin with the notion that a price chart for a stock shows a road map of past price performance, which provides guidance for predicting future share-price direction.

Here's how to read a daily chart. There are two moving averages to follow; the 50-day simple moving average is in blue while the 200-day simple moving average is in green.

Here's how to read a weekly chart. This chart shows weekly price bars going back to the beginning of 2007 and thus includes the crash of 2008, and then the current bull market for stocks that began in March 2009. The red line tracks the ups and downs of the key weekly moving average. The green line is the 200-week simple moving average. The red line that oscillates along the bottom of the chart is the momentum reading on a scale of 00.00 to 100.00. A reading below 20.00 is oversold and a reading above 80.00 is overbought.

A technically positive weekly chart occurs when a stock ends a week above its key weekly moving average with the momentum reading rising above 20.00.

A technically negative weekly chart occurs when a stock ends a week below its key weekly moving average with the momentum reading declining below 80.00.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the funds mentioned.