Just a quick review on the week after Powell's Pow Wow speech that sent markets off a cliff...
The weekly NASDAQ futures chart had a rather uncommon gap down that failed a close attempt. The week closed down near the lows as well. MACD turned down and is about to cross under the MACD Signal, and well as into the bear territory. All these happening after a failure of the 55EMA three weeks ago. Taken together, it is not looking good at all, and the technical structure warns badly for the next 7 to 8 weeks.
A target area of 11-11.5K is expected, but with such initial momentum, it appears that the NASDAQ is more likely to dip below 10K level within the next 8 weeks. This is observable only form the weekly chart itself!
Turning to the daily chart, we can see that the last week had bulls struggling with an early but futile attempt to close the gap. This created top tails by mid-week which indicated more downside probability (as expected), and despite a rally on some good data later in the week, the bearishness overwhelmed into closing on Friday. The technical indicator RPM is showing a strong momentum, and the MACD signal is already in bearish territory.
11750 appears as an immediate support, which is not likely to hold out long, but is likely to offer a breather of the bear charge next week. The gap range formed in the week's opening is now a resistance zone.
Overall, there is a strong bearish background, but the week incoming should offer a pause, and some sort of a muted technical bounce. Thus far, the modelling targets the NASDAQ below 10K. Until there is a clear break of this model projection, which might take at least a month to form, the NASDAQ is following the projection; heads up.
The weekly NASDAQ futures chart had a rather uncommon gap down that failed a close attempt. The week closed down near the lows as well. MACD turned down and is about to cross under the MACD Signal, and well as into the bear territory. All these happening after a failure of the 55EMA three weeks ago. Taken together, it is not looking good at all, and the technical structure warns badly for the next 7 to 8 weeks.
A target area of 11-11.5K is expected, but with such initial momentum, it appears that the NASDAQ is more likely to dip below 10K level within the next 8 weeks. This is observable only form the weekly chart itself!
Turning to the daily chart, we can see that the last week had bulls struggling with an early but futile attempt to close the gap. This created top tails by mid-week which indicated more downside probability (as expected), and despite a rally on some good data later in the week, the bearishness overwhelmed into closing on Friday. The technical indicator RPM is showing a strong momentum, and the MACD signal is already in bearish territory.
11750 appears as an immediate support, which is not likely to hold out long, but is likely to offer a breather of the bear charge next week. The gap range formed in the week's opening is now a resistance zone.
Overall, there is a strong bearish background, but the week incoming should offer a pause, and some sort of a muted technical bounce. Thus far, the modelling targets the NASDAQ below 10K. Until there is a clear break of this model projection, which might take at least a month to form, the NASDAQ is following the projection; heads up.
