By Jeff Pierce
Below are some of the key points of the Nasdaq chart I wanted to touch upon in light of today’s inability to hold it’s gains.
- Breakdown from bearish rising wedge.
- Falling trendline on RSI w/ lower highs and today’s news driven move unable to rise above trendline. It did exactly what it should have done in a bearish trading enviornment.
- Failure to sustain today’s open. When these sort of reversals happen the move can be violent in the other direction as traders scramble to cut longs and shorts add to positions.
- Next key area of support to see if we can break on Nasdaq. If this happens then I suspect the markets will really gains some steam to the downside.
- Lots of gaps to fill with my first target (if we break said support) being near 2825.
Nasdaq Composite Index ($COMPQ) – 60 Min.
Jeff Pierce is a momentum trader that specializes in market timing. He utilizes a proprietary timing system that helps minimize emotions and trading biases within his trading plan. He offers a free newsletter at zentrader.ca that alerts you to trend changes within the market so you’ll always be on the right side of the trade.
