FOREXcom

Nasdaq could drop if THIS level breaks

Short
FOREXCOM:NSXUSD   US Tech 100 CFD
The Nasdaq and other US indices might be a tad higher, but stocks are not out of the woods yet as yields continue to press higher with the US 10-year comfortably above 4% now.

At the time of writing, the Nasdaq was testing resistance around 11250, where it also met the 21-day exponential moving average . This average has capped the gains on most occasions recently, suggesting that the bear trend is strong.

Until the index makes a higher high, I will continue to look for weakness and bull trap signs to emerge.

One such scenario could be if the Nasdaq goes back below the reclaimed June low at 11036. Should that happen, then those who bought the latest dip will probably rush for the exits, leading to more technical selling pressure.

So, keep a close eye on that level, especially on the lower time frames.

By Fawad Razaqzada on behalf of FOREX.com

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