Nasdaq 100 - Headed to new lows

Just 24 hours ago, we turned again bearish on the Nasdaq 100 index, which was quickly followed by a selloff of more than 3%. We also set price targets for NQ1! at 11 500 USD and 11 000 USD. We maintain those price targets as we remain bearish on the U.S. economy. That is because we think more rate hikes and economic tightening will drag the stock market to new lows. Additionally, the next wave of selling will likely experience even faster acceleration than the previous one; therefore, we voice caution for investors. We will monitor the volatility for more clues; ideally, we would like to see a bounce up above 30 USD.

Illustration 1.01

Yesterday, we pointed to the retracement (toward the 20-day SMA) shown above. We noted that this retracement acted as a natural correction of a downtrend and the selling pressure was likely to resume soon. Moving averages continue to indicate the downtrend.

Technical analysis - daily time frame
RSI is neutral/slightly bearish. Stochastic turned bearish again. MACD is turning bearish too. DM+ and DM- performed bearish crossover. Overall, the daily time frame is bearish.

Illustration 1.02

The picture above shows simple support and resistance levels for NQ1!.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame stays bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade closed: target reached:

Our price target of 11 500 USD was reached.