Good Friday all. Looks like we “could” be getting the pullback we’ve
been looking for now that the NASDAQ appears to be somewhat cracking. We
say somewhat, because one down day does not a trend make, and we’ve got
a key options expiration today, so Monday could be any kind with a new
options period set to kick off. However, we still suspect the markets
are in for lower levels, and until these markets prove otherwise now,
we’re sticking to our guns.
Advance/decline numbers this morning are clearly favoring decliners by as much as 3-1 in early trading. Volumes remain light. The VIX has been picking it up. And, the NASDAQ continues to hover around that upper trend line we got so tired of talking about for weeks there. As you can see, we’ve got our reasons to believe these markets are in a position to start doing some backing and filling as soon as next week.
If that ends up being the case, we don’t see how the NASDAQ doesn’t inevitably find its way back to its 3X3 DMA (blue line) shown in this daily chart provided below, or potentially even the bottom trend line, which interestingly enough is also down around the 25X5 DMA (purple line).
It’s still way too soon to make either of those calls, but they are worth pointing out should the markets’ modest weakness yesterday really start to pick up steam today and into next week. We’re going to know in pretty short order what’s to come, especially if the NASDAQ can’t break above this week’s high early next week.
Advance/decline numbers this morning are clearly favoring decliners by as much as 3-1 in early trading. Volumes remain light. The VIX has been picking it up. And, the NASDAQ continues to hover around that upper trend line we got so tired of talking about for weeks there. As you can see, we’ve got our reasons to believe these markets are in a position to start doing some backing and filling as soon as next week.
If that ends up being the case, we don’t see how the NASDAQ doesn’t inevitably find its way back to its 3X3 DMA (blue line) shown in this daily chart provided below, or potentially even the bottom trend line, which interestingly enough is also down around the 25X5 DMA (purple line).
It’s still way too soon to make either of those calls, but they are worth pointing out should the markets’ modest weakness yesterday really start to pick up steam today and into next week. We’re going to know in pretty short order what’s to come, especially if the NASDAQ can’t break above this week’s high early next week.
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