Here is a detailed update the my NAS 100 chart posted yesterday night. Today the bears gained the upper hand and pushed price back down to the lower edge of the neutral zone with the brutal sell off in growth stocks. A move below the neutral zone increased the probability of a deeper correction down the the 886. I've drawn three zones of focus if price is to drop further. The first is a fib extension zone below the closest pivot. The second zone is the completion of harmonic pattern that lines up with the descending trendline. The bottom zone would take price down to the higher timeframe 618 fib and complete a compound correction. These zones can be used as targets for shorts or areas for potential scalp longs.
Currently the market is moving sideways to down and is very choppy and hard to swing trade as the narrative changes by the hour. It is now best to either trade intraday or pick solid names and average in for a long term hold. Either way you must be very selective and impatient with losers. If you like growth names try to be patient as buy the dip is dead for now. I scrolled through my buy list of growth names and most have broken key support or are just about too. It could be painful on that front until all the weak hands are flushed out. Many have had such a strong run they have not even pulled back to their longer term 382 Fib retracements despite large percentage sell offs. Good luck out there.
Currently the market is moving sideways to down and is very choppy and hard to swing trade as the narrative changes by the hour. It is now best to either trade intraday or pick solid names and average in for a long term hold. Either way you must be very selective and impatient with losers. If you like growth names try to be patient as buy the dip is dead for now. I scrolled through my buy list of growth names and most have broken key support or are just about too. It could be painful on that front until all the weak hands are flushed out. Many have had such a strong run they have not even pulled back to their longer term 382 Fib retracements despite large percentage sell offs. Good luck out there.
Comment:
One inkling of hope for the bulls is this chart here. The reverse head and shoulders is still in play and the NAS loves to double dip before it rips so there is still a chance to dip tomorrow into the first green box and then take off. That first pivot will be key overnight and into tomorrow morning.
Comment:
Back inside the neutral which is better than being below it. For now we have seen the double tap, just need some follow through next week.
