Quick look at the Nasdaq 100 for the Week of May 9-13. Just a limited write up this week as I have a busy schedule right now. Last week the Nasdaq rallied into and immediately after the FOMC meeting on Wednesday, but the initial positive reaction was reversed on Thursday as reality set in that the accommodative Fed was gone. The Nasdaq closed once again at the weekly lows. Dropping another 1.22 % capping 5 straight lower weekly closes in a row. The Nasdaq is now more than 25% off the ATH.
Going into this week my bias remains bearish. It looks likely that a full compound correction into the 11777 level is in the cards. The one positive from last week was that the 1.13 fib extension level held. If price moves back up expect the 9 ema and the bottom of the neutral to continue to be resistance. If the 1.13 level fails and price falls expect a move to the 1.27 fib at 12373. Below that expect a move into the 382 long term fib retracement at 11777.
CPI Data comes out this week on Wed and earnings continue. The CPI data will drive most of the narrative as will the movement in the bond market and oil.
Good luck and happy trading.
Going into this week my bias remains bearish. It looks likely that a full compound correction into the 11777 level is in the cards. The one positive from last week was that the 1.13 fib extension level held. If price moves back up expect the 9 ema and the bottom of the neutral to continue to be resistance. If the 1.13 level fails and price falls expect a move to the 1.27 fib at 12373. Below that expect a move into the 382 long term fib retracement at 11777.
CPI Data comes out this week on Wed and earnings continue. The CPI data will drive most of the narrative as will the movement in the bond market and oil.
Good luck and happy trading.
Comment:
Keep an eye on these expanding trendlines as the can act as support and resistance.
Comment:
So far negative response to CPI. Here are the two areas I am watching for a a flush lower. I would expect a decent bounce from the low arrow if it gets there. Don't plan to short as the market is already very oversold and has the potential to reverse hard at any moment.
Comment:
Another leg lower today. Now reacting to the first trendline. The zone has offered two 100+ point bounces so far. Still watching the lower trendline and the 382/1.618 zone for a bigger bounce.
Comment:
Got the bigger bounce off the 1.618 level exactly. Price moved just below the 382 retracement and has not touched lower trend line yet. Solid 500 point move. Now back into resistance at he Mar 5th low. Each resistance zone has been met with heavy selling so I will be watching for that.
