Nasdaq 100 - No healthy signs in the Nasdaq 100 index

In the previous post, we noted that we would pay attention to the closing price for 1st June 2022. The price closed below the 31st May 2022 low, which hints at the possible resumption of the downtrend. Similarly to yesterday, we will also pay attention to today's closing price. If it closes lower again, it will further bolster the bearish case for NQ1!. Besides that, we still maintain our bearish view on the Nasdaq 100 index and expect it to reverse to the downside soon.

Illustration 1.01

The picture above shows two possible scenarios for NQ1!; however, we have little faith in the bullish scenario. Instead, we expect NQ1! to start breaking down.

Technical analysis - daily time frame
RSI and Stochastic are bearish. MACD points to the upside; however, it remains in the bearish territory. DM+ and DM- are bearish. Overall, the daily time frame is bearish for NQ1!.

Illustration 1.02

The retracement below the sloping resistance will confirm the faltering bear market rally; we will pay close attention to it.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is 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 serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Comment:

*typo in the text: "The price closed below the 31st May 2022 low." ...below the 31st May 2022 close*

Trade active:

We are watching the hourly downward sloping channel. Volume continues to drop as the price marches towards the upper bound. If a breakout occurs, it will be bullish; however, failure will be very bearish.

Trade active:

The bullish breakout took place. In addition to that, the price moved above the high on 31st May 2022. These are bullish developments; however, inflows into the stock market are substantially lower than in the past few weeks. The declining volume accompanying the rising price also does not paint the most bullish picture.

Trade active:

NQ1! overtook its high from 31st May 2022.

We will watch out for invalidation.

Trade active:

Trade active:

Two invalidations took place; momentum turned back to bearish. Retracement back above resistance levels will imply caution.