Nasdaq-100 May Have Signs of a Bullish Turn
A painful half is finished for the Nasdaq-100. Now there could be signs of a turn.
The first pattern on today’s chart is the 11,069 level. NDX peaked in that area in July 2020 and bounced there 3-1/2 months later. The index returned to hold the same support in mid-June 2022.
Second, notice how prices held about 2.6 percent above that low in the past week. Could it be a higher low, after six miserable months of lower lows? Some technicians may view that as a potential sign of the bearish trend fading.
Third, NDX probed below Friday’s low yesterday before rallying back above its high. That kind of outside candle is a potential bullish reversal pattern.
Next, this chart includes two of our custom scripts: Distance from MA and MA streak. Both are plotted using the 10-day simple moving average (SMA).
The line chart shows how last month’s low was the lowest versus the 10-day SMA since the nadir of the coronavirus crash in March 2020.
The histogram illustrates how the 10-day SMA has frequently shifted direction since that oversold condition. It could be another sign of the trend running its course and losing cohesion.
Earnings season is around the corner, bond yields are slipping and commodities are falling. Those macro changes could also be potentially favorable for the Nasdaq -- especially considering the pain caused by inflation earlier this year.
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Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on today’s chart is the 11,069 level. NDX peaked in that area in July 2020 and bounced there 3-1/2 months later. The index returned to hold the same support in mid-June 2022.
Second, notice how prices held about 2.6 percent above that low in the past week. Could it be a higher low, after six miserable months of lower lows? Some technicians may view that as a potential sign of the bearish trend fading.
Third, NDX probed below Friday’s low yesterday before rallying back above its high. That kind of outside candle is a potential bullish reversal pattern.
Next, this chart includes two of our custom scripts: Distance from MA and MA streak. Both are plotted using the 10-day simple moving average (SMA).
The line chart shows how last month’s low was the lowest versus the 10-day SMA since the nadir of the coronavirus crash in March 2020.
The histogram illustrates how the 10-day SMA has frequently shifted direction since that oversold condition. It could be another sign of the trend running its course and losing cohesion.
Earnings season is around the corner, bond yields are slipping and commodities are falling. Those macro changes could also be potentially favorable for the Nasdaq -- especially considering the pain caused by inflation earlier this year.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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