It appears that the leg count and the similarities (so far) of the current price action with the January-February sequence was correct. If the pattern continues to replicate in the same way, then Nasdaq is ahead of a strong correction as this suggests we are currently at the top of the last leg
Well, considering that the price has lost its dynamic support and had previously reached its highest level in history, it seems that the price intends to make a correction, our first correction target is 15,400 and if this support is lost , The next static support is 15150. Of course, now the price has reacted to its first static support, which is 15520 to 15550
In February 2021 that resulted in almost a -12% correction that broke below the 1D MA100 before rebounding. -12% from the top suggests a pull-back value of 13840 while the 1D MA100 is currently at 14417. Perhaps a Fibonacci extension measurement from the last Higher Low (the bounce on the 1D MA50 would be more accurate. In February the correction stopped exactly on the 1.618. Currently the 1.618 Fib ext is at 14176.50.
Without much economic news to influence investors, nervous sentiment spilled over from Friday's jobs report. That all could quickly change with new economic data and an update from the Fed just as the 10y Treasury Note auction completes.
The Nasdaq set a new all-time high and record close. Still, there is resistance around 15,400. Watch that area for a breakout this week or for continued resistance to send the index lower.
Based on the Nasdaq chart and the narrow gains focused on big tech , the expectation is for Sideways or Lower
Expect a reaction in Treasuries to spill over to the USD and Equities.The JOLTs Job Openings report on Wednesday contrasted last week's employment data and show more openings than people willing to fill. With Federal Unemployment Benefits ending this week, supply in the labor market will pick up, helping to fill job openings
Nasdaq ended the day with a +0.07% gain, setting a new all-time and another record close. The 3% red body rests in the middle of the candle, representing the indecision for buyers and sellers during the day. The closing range of 52% is ok. The fight between bulls and bears created a higher volume day than the previous day. There were over two declining stocks for every advancing stock.
The S&P 500 (SPX) declined -0.34%. The Russell 2000 (RUT) lost -0.72%. The Dow Jones Industrial Average (DJI) was the worst of the major indexes, falling -0.76% and following the cyclical sectors underperforming for the day. The VIX Volatility Index ( VIX ) gained +10.54%.
Only the growth sectors ended the day with gains. Consumer Discretionary ( XLY +0.29%) and Communications ( XLC +0.23%) are at the top of the sector list. Utilities ( XLU -1.32%) and Industrials ( XLI -1.73%) were at the bottom. Losses by 3M , Amgen , and Honeywell brought down the Industrials ETF and led the Dow Jones lower.
The US Dollar strengthened today after sliding for the past few weeks. The USD Currency Index ( DXY ) climbed by +0.34%. US Treasury Yields for both long and short-term notes rose for the day. Despite the disappointing jobs report on Friday, bond investors still believe the Fed will continue plans to start tapering bond purchases this fall. The lower demand moves bond prices lower and yields higher.
High Yield ( HYG ) and Investment Grade ( LQD ) Corporate Bond prices also fell sharply today. The price movement is tracking along with Treasury prices. The demand for high-yield corporate bonds has been at its highest point since the start of the pandemic as investors seek higher returns. If Treasury yields rise, expect investors to rebalance back toward less risky instruments.
The Put/Call ratio declined to 0.609. The ratio signals that investors remain bullish . The CNN Fear & Greed index remained near neutral.
Three of the four largest mega-caps gained for the day. Only Microsoft ( MSFT ) declined, testing its 21d EMA but getting support at the key line. Apple ( AAPL ) gained +1.55% for the day. The top mega-cap for the day was Alibaba (BABA). Chinese stocks got a boost from better than expected trade data for China and Hong Kong reopening their border.
Chinese stocks FUTU Holding ( FUTU ) and JD .com ( JD ) topped the daily update growth list. In third and fourth place were DraftKings ( DKNG ) and Penn National Gaming ( PENN ), finishing their first weekend of College football and entering the first week of the NFL . DocuSign ( DOCU ) was at the bottom of the list, giving back all of its gains from Friday's earnings reaction.
Stay healthy and trade safe!
Well, considering that the price has lost its dynamic support and had previously reached its highest level in history, it seems that the price intends to make a correction, our first correction target is 15,400 and if this support is lost , The next static support is 15150. Of course, now the price has reacted to its first static support, which is 15520 to 15550
In February 2021 that resulted in almost a -12% correction that broke below the 1D MA100 before rebounding. -12% from the top suggests a pull-back value of 13840 while the 1D MA100 is currently at 14417. Perhaps a Fibonacci extension measurement from the last Higher Low (the bounce on the 1D MA50 would be more accurate. In February the correction stopped exactly on the 1.618. Currently the 1.618 Fib ext is at 14176.50.
Without much economic news to influence investors, nervous sentiment spilled over from Friday's jobs report. That all could quickly change with new economic data and an update from the Fed just as the 10y Treasury Note auction completes.
The Nasdaq set a new all-time high and record close. Still, there is resistance around 15,400. Watch that area for a breakout this week or for continued resistance to send the index lower.
Based on the Nasdaq chart and the narrow gains focused on big tech , the expectation is for Sideways or Lower
Expect a reaction in Treasuries to spill over to the USD and Equities.The JOLTs Job Openings report on Wednesday contrasted last week's employment data and show more openings than people willing to fill. With Federal Unemployment Benefits ending this week, supply in the labor market will pick up, helping to fill job openings
Nasdaq ended the day with a +0.07% gain, setting a new all-time and another record close. The 3% red body rests in the middle of the candle, representing the indecision for buyers and sellers during the day. The closing range of 52% is ok. The fight between bulls and bears created a higher volume day than the previous day. There were over two declining stocks for every advancing stock.
The S&P 500 (SPX) declined -0.34%. The Russell 2000 (RUT) lost -0.72%. The Dow Jones Industrial Average (DJI) was the worst of the major indexes, falling -0.76% and following the cyclical sectors underperforming for the day. The VIX Volatility Index ( VIX ) gained +10.54%.
Only the growth sectors ended the day with gains. Consumer Discretionary ( XLY +0.29%) and Communications ( XLC +0.23%) are at the top of the sector list. Utilities ( XLU -1.32%) and Industrials ( XLI -1.73%) were at the bottom. Losses by 3M , Amgen , and Honeywell brought down the Industrials ETF and led the Dow Jones lower.
The US Dollar strengthened today after sliding for the past few weeks. The USD Currency Index ( DXY ) climbed by +0.34%. US Treasury Yields for both long and short-term notes rose for the day. Despite the disappointing jobs report on Friday, bond investors still believe the Fed will continue plans to start tapering bond purchases this fall. The lower demand moves bond prices lower and yields higher.
High Yield ( HYG ) and Investment Grade ( LQD ) Corporate Bond prices also fell sharply today. The price movement is tracking along with Treasury prices. The demand for high-yield corporate bonds has been at its highest point since the start of the pandemic as investors seek higher returns. If Treasury yields rise, expect investors to rebalance back toward less risky instruments.
The Put/Call ratio declined to 0.609. The ratio signals that investors remain bullish . The CNN Fear & Greed index remained near neutral.
Three of the four largest mega-caps gained for the day. Only Microsoft ( MSFT ) declined, testing its 21d EMA but getting support at the key line. Apple ( AAPL ) gained +1.55% for the day. The top mega-cap for the day was Alibaba (BABA). Chinese stocks got a boost from better than expected trade data for China and Hong Kong reopening their border.
Chinese stocks FUTU Holding ( FUTU ) and JD .com ( JD ) topped the daily update growth list. In third and fourth place were DraftKings ( DKNG ) and Penn National Gaming ( PENN ), finishing their first weekend of College football and entering the first week of the NFL . DocuSign ( DOCU ) was at the bottom of the list, giving back all of its gains from Friday's earnings reaction.
Stay healthy and trade safe!
Trade active
