Since breaking below a rising trendline on 18 Jan around 15400, the Nasdaq had plunged a fair bit lower to almost 13000 before attemtping a strong rebound that brought just above the 200 day moving average again. But alas, this turned out to be short-lived only served to proof that the 200 day moving average is now a resistence.
NQ is now right at a minor horizontal support with a very weak close last Friday. The odds appear to be greater for it to continue it's downward momentum in the coming week.
Not all sectors are weak at the moment but clearly we have sector rotation in play and techs are out of favor for now.
Disclaimer: Just my 2 cents for discussion, not a trade advice. Please your own due diligence and trade according to your own risk tolerance and don't forget that money management is important!
NQ is now right at a minor horizontal support with a very weak close last Friday. The odds appear to be greater for it to continue it's downward momentum in the coming week.
Not all sectors are weak at the moment but clearly we have sector rotation in play and techs are out of favor for now.
Disclaimer: Just my 2 cents for discussion, not a trade advice. Please your own due diligence and trade according to your own risk tolerance and don't forget that money management is important!
Note
NDX is now hanging by a thin thread but it looks like a break is only a matter of "when", not "if". The clue could come as soon as tomorrow, when we see how GOOG and MSFT (among the bellwether guys) performed after their earning announcements after market close tonight.
From the way GOOG tanked on huge volume last Friday, I suspect that things are not looking good going forward. Even if GOOG surprises to the upside, do not FOMO to go long on it. It is likely to fizzle if the overall market continues to be weak (and the overall market is WEAK).
If history is any guide, sectors like tech are usually among the first to top out while sectors like XLP, XLU and XLE are usually among the last to remain "standing" (eg stocks like DLTR, KHC, EXC are still bullish right now).
Should NDX break below 1300 in the near future, then it could be some time before we see a real bottom. I won't be too hasty to try picking bottoms on the techs.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.