NASDAQ last barrier to break. Consolidation until then.

On my most recent Nasdaq analysis 2 weeks ago, I laid out the key pressure levels of the uptrend that started after the March 15 bottom:


As you see, the index invalidated the Channel Down and by breaking above the 1D MA50 (blue trend-line), it naturally reached as high as the 1D MA200 (orange trend-line), which broke yesterday. However, it is clear that the wider pattern has been a Falling Wedge and not surprisingly, the index is currently struggling to break above its Lower Highs (top) trend-line.

If the news of this week (starting today with the GDP and completing on Friday with the Nonfarm Payrolls) turn out bullish enough to manage a break above the Wedge, then NDX will target the next Fib in line, the 0.786 retracement level (15870) and then complete the correction's recovery at 16670 (requirement is for one 1D candle to close above each Resistance level). Notice how yesterday's top came exactly on the 0.618 Fib.

If however the price gets rejected on the Lower Highs (and 0.618 Fib), expect a short-term consolidation within the two MA periods, with the 1D MA50 in support. Breaking below the 1D MA50 will be far from ideal, putting at risk the 0.236 Fib and the March 15 Support.




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