As the market sells off due to corona virus outbreak, the first S&P 500 circuit-breaker was triggerred (down 7%), so trading
is halted for now. Waiting for the Cash market to open (adjust your US daylight savings change), the next levels to watch for are the second
and third circuit-breaker at 13%, 20%. Market will probably pullback momentarily, to then resume...
Nasdaq is trapping Bullish and Bearish traders with multiple false breakouts (red/green circles). With MACD also showing indecision with constant crosses above and below the signal line.
My bias is still bullish, waiting for a clear evidence of strength to go LONG (for the DOW and S&P500 to be aligned). So far Nasdaq is finding support on the Moving Average 55....
As the WEF (World Economic Forum) in Davos is developing, and after the US holiday on monday, the market today picked up the up-trend very strongly. NASDAQ is currently retracing from the 60 pips up-move, and expecting the trend to continue if the "Confirmation level" is broken. Taking profits at 127% and 161.8% Fib levels. Only shorting if the "Invalidion level" is taken.
Closing the previous week on more than 78.6% Fib drop, Nasdaq today pickup the up-Trend move during Asian markets. Battling to overcome the 9'000 level and the previous peak level at 9'050, NQ is moving within an Upward channel. Retracement wave 4 is expected to touch the lower channel and resume the move up if the "confirmation" level is overtaken.
After friday's overnight drop due to a major geopolitical issue, Nasdaq managed to recover up to 80%. Currently undergoing a correction, will resume the uptrend if the 8860.00 price level ("confirmation level") is broken. Instead if the 8740 price level ("invalidation level") is broken, the downtrend will continue.
Up trend (Wave 1) started with the Asian market open, followed by a "Deep" A-B-C retracement forming a Double bottom.
Expecting the up trend to resume during the US session today.
Equity markets are set to end the current year in record highs. Major US indexes: NASDAQ100, SP500 and DOW30 pushed higher after Christmas on 26/12/2019. On 27/12/2019 there was a major retracement, but next week the uptrend is set to continue. Wave C retracement has ended and NASDAQ is heading to a new Bullish impulse wave.
