The Nasdaq100 (NQ) is trying to firm after yesterday’s near 1% slide, but remains vulnerable to a deeper selloff as early as today. Significantly, NQ is showing fatigue in its bounce off last Monday’s September low, with odds high for a retest of the psychologically key 15k whole figure level in the hour following US Fed Chairman Powell’s comments at 10am EST. Any initial short-covering post-Powell is likely to be fleeting, as bulls increasingly take notice of the weight of NQ sinking within the broader weekly chart upchannel. Any weekly close below the September low will ensure a lower October low versus the September low, and dramatically increase the likelihood for NQ to test the weekly chart upchannel support by October sometime. The weekly RSI, Stochastics and MACD are tiring or steadily sliding, weighing on the bottomish daily RSI and Stochastics. I am looking to go short in the red zone (of the daily chart), targeting the green zone for Monday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).
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