NASDAQ vastly overbought on 1D

Since my last long-term update on Nasdaq 25 days ago, the price accurately recovered from the September correction, and hit both of our targets:


Currently however the picture from a technical standpoint seems to be reversing again as the index is approaching the top (Higher Highs trend-line) of the 12 month Channel Up it has been trading on ever since September 2020.

The RSI in particular on the 1D time-frame is largely overbought and just a fraction away from the 80.000 Resistance which was last seen on the September 02 2020 market top. As you see on the chart that caused an immediate flash crash of more than -14%, with the index eventually finding support on the 1D MA100 (green trend-line). The 1D MA100 has been an accurate buy level within this Channel Up.

A repeat of this -14% correction, depending on where it strikes (I've put it at the top of the Channel Up), could even hit the 1D MA200 (orange trend-line), which is a level the price hasn't made contact with since April 13 2020! Naturally, the strong medium-term swing buyers are expected to be found first on the 1D MA100 again and the long-term target set on the 2.0 Fibonacci extension around 17700.



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