Nasdaq Market Update for 10/14
Trend lines drawn from 9/3 (29d), 9/24 bottom (15d), 10/8 (5d) and today 10/14 (1 day).
The Nasdaq continued to rest from it's recent aggressive gains, dropping -0.8%. It's still trading within the highs and lows of the bullish day on Monday. The candle has a 53% Red body with a bearish 24% closing range on lower volume than the previous two days. Declining stocks outnumbered advancing stocks at a 2:1 ratio.
Materials, Industrial and Utilities were the top three sectors of the day. Energy started the day strong but faded significantly as trading progressed. Communications was the worst sector for the day, after having a strong showing earlier in the week. Tomorrow will bring updates on Jobless claims, Manufacturing, and Crude Oil inventories.
Several 2020 favorites are down significantly after hours including Datadog (DDOG), Cloudflare (NET) and Fastly (FSLY). Fastly is down almost 30% in postmarket trading after cutting Q3 guidance.
Start with the positive trends. The five day trend points to a +2.79% gain for tomorrow, which would take the index to near all time highs. That will probably meet up with resistance and so expect closer to +2.5% as the upper limit. If the index moves back towards the trend from the bottom, then expect a +1.41% gain.
Further pullback is certainly possible. Meeting back up with the trend from early September would result in a -2.03% loss where the index would find support from October support lines. Based on today's trading range, it's plausible the index will go sideways more and stay above Monday's low. That would be a great sign of strength at the current level.
I'm keeping the June Support line in view, but its now almost 15% below the Wednesday close and there are 4 key support levels that it would have to break thru. If we have a significant downside that takes the index below 11,300, then I'll add that possibility back to the chart.
The Nasdaq continued to rest from it's recent aggressive gains, dropping -0.8%. It's still trading within the highs and lows of the bullish day on Monday. The candle has a 53% Red body with a bearish 24% closing range on lower volume than the previous two days. Declining stocks outnumbered advancing stocks at a 2:1 ratio.
Materials, Industrial and Utilities were the top three sectors of the day. Energy started the day strong but faded significantly as trading progressed. Communications was the worst sector for the day, after having a strong showing earlier in the week. Tomorrow will bring updates on Jobless claims, Manufacturing, and Crude Oil inventories.
Several 2020 favorites are down significantly after hours including Datadog (DDOG), Cloudflare (NET) and Fastly (FSLY). Fastly is down almost 30% in postmarket trading after cutting Q3 guidance.
Start with the positive trends. The five day trend points to a +2.79% gain for tomorrow, which would take the index to near all time highs. That will probably meet up with resistance and so expect closer to +2.5% as the upper limit. If the index moves back towards the trend from the bottom, then expect a +1.41% gain.
Further pullback is certainly possible. Meeting back up with the trend from early September would result in a -2.03% loss where the index would find support from October support lines. Based on today's trading range, it's plausible the index will go sideways more and stay above Monday's low. That would be a great sign of strength at the current level.
I'm keeping the June Support line in view, but its now almost 15% below the Wednesday close and there are 4 key support levels that it would have to break thru. If we have a significant downside that takes the index below 11,300, then I'll add that possibility back to the chart.
Website: drewby.com
Twitter: twitter.com/drewrobbins
All ideas are for information purposes only. I may or may not invest in the stocks discussed. Before investing in any stock, do your research and trade using your rules.
Twitter: twitter.com/drewrobbins
All ideas are for information purposes only. I may or may not invest in the stocks discussed. Before investing in any stock, do your research and trade using your rules.
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