NASDAQ Neutral so far. See which break-outs to trade.

The Nasdaq Index (NDX) staged a fair rebound yesterday on a Lower Lows trend-line that started on the September 01 Low. Today we see an early rejection on the futures market, which from one side is expected as the market is preparing for Wednesday's Fed Rate Decision. The 4H RSI however has been on Higher Lows since August 22, staging a Bullish Divergence.

The last similar Divergence was spotted during the May 12 - 20 Lower Lows. When the index broke above the 4H MA50 (blue trend-line) for the second time, it targeted the 4H MA200 (orange trend-line).

As a result, our short-term plan is to wait for either that 4H MA50 break-out and target the 4H MA200 or the Lower Lows break-out and target the 1W MA200 (red trend-line). As a side-note, notice how the index has been trading on symmetrical Lower Highs as well (Aug 26 and Sep 13), thus we can view the price action as a Channel Down. The 4H MA200 (our bullish target) is exactly at the top (Lower Highs trend-line) of that Channel Down.



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