NASDAQ the haven of tech stock lovers is hanging on thread before a plunge deep down into the abyss? is this going to happen? are we gonna see the blood on the street? Lets dig deep and analyze.
From the technical analysis point of view things dont look good at all for this index. Below are some points to consider:
Bear case: - Price below the 50MA for the first time in a couple of months - LSMA and QSMA pointing down - Uptrend line broken - daily PSAR pointing to the bear side - weekly PSAR flipped to the bear camp, this indicator is very important for the long term momentum. - daily acceleration has resumed the plunge warning
Bull case: - Price bounced on the support line - RSI not overbought
To me if the support line is lost I see a plunge to the 0.618Fib which may hold as support and if it is lost rendez-vous at 200MA aligned with 0.5fib. I am still neutral till the market shows me the direction. For the moment I leave it hear and I will keep an eye on these indexes for you so that we can prevail in this market.