NASDAQ resisting the selling pressure. Well supported for now.

This is an update on my previous Nasdaq analysis where I called for potential further rise within a narrower Channel Up at the top of the longer-term Channel before a new technical correction comes:


So far this view has been confirmed as the Support of the previous Low (bold black line) is holding. See the similarities between now and the mid July - August Channel Up. The RSI sequences are almost the same following an identical RSI bearish divergence on Lower Highs. That should ultimately lead to a blow-off top around 17000.

If the small Channel Up breaks downwards and cracks the previous Low, I expect NDX to seek the 1D MA50 (blue trend-line) and if that doesn't hold either, possibly make a Low on the bottom of the 9-month Channel Up or even the Diverging Higher Lows trend-line.

Trade accordingly and with caution as Friday's Nonfarm Payrolls report is very likely to shape the fundamental landscape of this month with regards to the Fed's taper program.




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