Nasdaq100 (NQ) Dead Cat Bounce Off Oct Low Tiring
Nasdaq100 (NQ) Weekly/Daily/4hr
Nasdaq100 (NQZ22) is exhausting on its Dead Cat Bounce (off the October low) as seen by Tuesday’s sharp reversal after posting a fresh December high. NQ is suddenly at a new December low, and just a week or so’s volatility from retesting the 2022 low. NQ does not appear likely to reach the 61.8% Fib or the weekly chart downtrend/descending wedge resistance before the Xmas lull sets in. Watch for volatility today 945am EST with the US’ Flash services PMI. The escalation in the Ukraine-Russia conflict deserves close monitoring. Congratulations to paying subscribers who benefited from the Oct 18, 2022 analysis highlighting the early stages of a month plus Dead Cat Bounce, the Jan 18, 2022 warning of the NQ keeling over on a monthly chart, the alert February 18th, 2020 one day before the record high in the S&P500, warning of a pending slide in the Nasdaq100 and from the March 24th, 2020 report highlighting the looming multiday to multiweek rebound in NQ. The weekly RSI and Stochastics are tiring, weighing on the still upsloping weekliy MACD. I am looking to enter short in the red zone (of the daily chart), targeting the green zone for Thursday. 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). Click here for analysis on VIX, NATURAL GAS
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On the date of publication, Darren Chu did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.