NASDAQ Extremely close to a peak and a correction.

Nasdaq (NDX) closed yesterday on a red 1D candle, with the 1D RSI above the 70.00 overbought barrier, but remains within the (dashed) Channel Up, as well as supported by the 1D MA50 (blue trend-line) since November 03 2023.

Based on the 1D RSI which is within a Megaphone pattern, we might be approaching a peak similar to July 19 2023, whose RSI was also inside a Megaphone on almost the same levels as now. Following the peak, the price declined initially by -8.50%. Since the start of the year the other two major declines have been around -9.50%.

This suggests that if the index reverses around next week (Fed Rate Decision), we are technically aiming for 16200, which will put to a test Support 2 and the 1D MA100 (green trend-line), which made the bottom on the first -9.50% decline of last year on March 13.

The confirmation signal for atleast a short-term sell, can be when the index breaks the 1D MA50. Also, currently, the downside potential can be as low as the 1D MA200 (orange trend-line), which by its current course can make contact with the price around Support 3 (15700). The 1D MA200 has been untouched for more than 10 months (since March 13 2023).


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