NASDAQ preparing a mid-March rebound with eyes on the 1W MA200

Our last analysis on Nasdaq (NDX) 10 days ago, came with a warning that as long as the 1D MA100 (green trend-line) and the Lower Highs trend-line of the long-term Channel Down held, the trend was bearish towards the 11500 Support:


As you see the 11500 target was eventually hit, and with the Fed making an interest rate raise yesterday of 0.75% (the biggest hike since 1994), the index eyes the 1W MA200 (red trend-line) for the first time since August 2010, as more and more market participants call for a recession.

However, as long as the 1W MA200 holds, we have to go with the pattern in hand, i.e. the Channel Down which calls for a short-term rebound above the 1D MA50 (blue trend-line) and on the 1D MA100 to form a new Lower High. Target range: 13000 - 13400.

A 1W candle closing below the 1W MA200 should be enough to kick-start a sharp fall to the 1W MA300 (yellow line, scroll the chart downwards to see).



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