NASDAQ 100 CFD
Bearish outlook, bullish short term? On the monthly we can see a pretty nice bearish Wolfe wave wedge formed, with wave 5 already making its peak or swing high. This Wolfe wave is now be considered in play and looking for its target. ( I know im posting weekly chart ) BUT... We are coming to a crucial support level that we have not yet tested. I would not put all my marbles on it, but I would not be surprised to see a decent reaction off of this level. It is a possibiliy. It is not uncommon to see wave 5 of a Wolfe wave form the head to a head & shoulders or inverse head & shoulders pattern.
My thought is that crucial support becomes neckline to a bigger pattern head & shoulders. The right shoulder will create a bull trap for bulls who think the NDX will go on to make another ATH. When NDX price action shows a lower volume and a weakness to make a new ATH. Market direction will become even more obvious. And bulls and bears will come into more agreement with each other of where the market is headed. If NDX does make a move up to or near the left shoulder, it is possible we could see a short term bounce with Bitcoin and the crypto market as well. Please comment your thoughts
NASSIE, where do we go next?The market will be split between these 2 directions over the coming days and I can make a good argument for both though the bearish scenario looks a lot more obvious given the recent price action, technical breakdowns and hot inflation reports. Just remember, there's always a thin line between what the market makers make you feel will happen vs. what ultimately happens. We've seen some good examples of that since September 2020 already hence why it's important we don't lose focus on the bigger macro picture.
In a nutshell:
Ultimate bear scenario is for NDX to go as far down as 14385 and even 14030/13765 if 14950 and 14760 are consecutively lost. I personally don't believe this scenario will play out though it is a possibility I will be considering. The close today and tomorrow are crucial.
Ultimate bull case scenario is to find strong support around 14950/15000 on NDX however there are many headwinds ahead. NQ needs to recapture 15152, 15312 and 15415 to start building some short-term bullish bias. The real test and decisive moment for the index will be around 15550/15600.
We may have already started a bear market or we may be deflating the froth to enable bulls for the remainder of the year, I favor the later despite seeing new challenges and choppiness ahead.
A Nasdaq100 HistoryNasdaq100 this bad girl was born on 8th of February, 1971. At that time, she was worth just—$708.16. Chilling, I mean she’d go to every bar to flaunt her beauty, such a tease!
The babe needed the whole world to know she existed. Guess what? she got noticed.
Everyone started to pay attention—street guys, thugs, jay-walkers name them… a sad turn-of-event, In 1973, Yup! the mama crashed. 400 points were deducted from her (stock market crash) net worth. These notice-pad took advantage of her. Bad timing if you ask me. As an observer, The deduction came after the collapse of the Bretton-woods brothers system accompanied by the October 1973, oil-crisis. Like I said, “a sad turn-of-event”. Anyway,
It only lasted for a year but took months (11 months) though. Nas100 came back with a surge—I’ve never seen that kind of glow up in years. The beauty that she is—doubled her net worth by 5580 points (December of ’74-September, 2002).
Honestly, like I muttered, “never saw that one coming”.
Nasdaq100 Humpty-Dumptied
In schools, they usually said, “Humpty-Dumpty sat on the wall, Humpty had a great fall…” Right? I mean it’s been long—but Ndx… as she likes to be nick-named, decided to be the next humpty… thinking, “if she crossed her legs, her fall might be posh”, Oh, no miss!
You got served.
Ndx—didn’t just fall, I think she crashed. You know that 5,580 points she gained? It vanished, by—3,000 points lower. This time, it was a freaking bubble gum called “dot-com” like… who even chews bubble gums on walls. Hearing that story just made me so mad.
The clouds were clear actually, sirens of blue-red were all I could see. Nq (another nick-name try to catch up hun.) stayed in the hospital for—Two and half years before… she could walk again.
The popular big wheel-chair in March of 2003, is the talk of town. Apparently, Nasdaq100 came to school in style. She tried to gain her place but failed terribly, “again”. At this point, no-one cared. Her worth barely got past $4,000.
“A resilient one”, I must say because, Nq never gave up.
An Unexpected Nasdaq100 Growth
Four years after, Nas100 is still struggling. We all took turns to visit—now we were concerned. Depression came knocking—in August, 2007, her net worth went back to $2,000. This time around it was a bank problem, They called it, “The rejection of the bank bailout bill by the congress” Whatever that meant. The news travelled wide that—we couldn’t help but see how she was faring.
It lasted till February, 2009. Surprisingly in 2018, she was back to school. This time: the glow up was unbelievable—her net worth went from $2,000 to $16,600. I mean, for a moment… I’m actually lost for words till this day.
Currently, she has about 100 companies in her name; all of which aided to her massive growth. According to history, that’s actually why she’s called “Nasdaq100”.
Hey! Jamal, did you like my story? Are you sleeping, what the hell—wake up!
Ndx Watch Hour... A New Bearish Pull?According to the chart below, you can tell that you need to actually watch this clip to get it right?...
Anyway, last week was bearish and now we're seeing what looks like a double bottom the question now is---Are the bears done?
Well, that depends on the Higher low at 15300 right?
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NAS100 bearish signal following protocol Our previous NAS100 chart has confirmed a strong bearish signal on our daily and weekly timeframes. Please not that I have adjusted the target after noticing that it was off. Once we reached this target I will send a long term signal to reach a new all time high.
Please note that 99.5% of my ideas have hit at least TP¹ & TP², 87% Have HIT all TP's and at most 8% changed direction after meeting at least 2 targets.
NASDAQ formed Higher Lows with the 1D MA50 being the key.Nasdaq futures formed a new Higher Low within the long-term Channel Up on Friday and today (due to the Martin Luther King holiday) is naturally consolidating. This is still a bottom formation signal, as the very same Higher Lows pattern (green arrow) was previously seen in early October. That was a bottom formation with the 1D CCI sequences of then and now being identical. The confirmation for a rally will come once the 1D MA50 (blue trend-line) breaks as it happened on October 18.
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Ndx: 16000 Is The MarkHey y'all, so---I'm still waiting for the train Cos' honestly it's been a bit confusing. The over-all trend is still bullish but, I need to buy at a good price. The nasdaq100 isn't giving that. The hour-4 kind of gave a great pull that I missed out on. Well, that's the disadvantage of my strategy You miss it, you got to wait for another train.
16k is still my mark. It determines the next step!
In this video, I explain all that I'm expecting. Be sure to watch the whole clip!
If my work is something you admire, be sure to leave a like, comment and follow.
I'm forever grateful!
NDX in C wave up of larger scale B waveAfter ATH in Nov 22, which should be a wave 5 of 3 in the larger scale, now it is time to start wave 4 with ABC setup.
We can see that for the A of 4, we already finished the clear ABC pattern with B = 0.9A and C pushing to 1.236 of A, which is a classic flat.
With recent 3-up (potential A of B) and 3-down (potential B of B, especially with the fact that B already retraced to 0.618 A), this may be the setup of B, which should be A3-B3-C5, and now is the start of the final wave C.
We expect this C wave push to 0.618 of previous large A, and then go down to start the final C, which should wrap up the even larger scale wave 4.
Ndx: Wick Fill Or NotSomething great happened to me---I lost a trade but the reason I said it's great is---it revealed to me what I needed to do personally. My ego and intuitions get the best of me sometimes. Which I know I need to work on.
Either way, I also took the trade because of a daily wick fill I believe might happen. Not expecting though I'll just wait for the market to decide...
Then again, let me remind you of the kevels.
Bulls---17200, 16400 and 15600 (mid)
Bears--14400, 14800 and 15200 (mid)
The bulls are at the strong stick now but since there's a wick, the bears might just be back...
Remember, this is my journal so I post everything and talk about everything.
Follow me to be more enlightened or not if you think trading isn't for you. The question is, are you honest with you?
I'm brutally honest and the truth hurts so only follow me for the truth... That wasn't even ego speaking but you get it though.
Ndx: What The Side Channel Sayshey y'all we're currently in a channel... "side-channel" with 16000 serving as the mid, 16771 top and 15580 it's bottom.
Be sure to use this as a guide.
In that---if the 16000 serves as a resistance, then these bears would be back and vice-versa.
In this video, I explain all that I'm expecting. Be sure to watch the whole clip!
If my work is something you admire, be sure to leave a like, comment and follow.
I'm forever grateful!
17500 on The CardsThe bottom trendline of the major weekly channel held with the most recent push to the downside. This indicates the presence of institutional demand and the chances of new all time highs is good. There is also the formation of a bullish corrective structure as indicated by the green flag. This does not mean that there is no longer downside risk and I will be keeping a close eye on the low of the recent daily spike. A close below that may indicate a more significant correction.
I am currently long and remain bullish but will be watching the resistance of the structure. The upside target will depend on if and whether the flag breaks after 3 or 5 downward moves.
Happy trading!
Linton
Nasdaq100- New ATH soon?On Monday, Nas100 dropped under 15500 horizontal support. However, this break lacked continuation and has proved to be a false break, with the index quickly and strongly reversing.
At this moment the price is just under a short-term resistance and a break here would expose the old ATH zone resistance.
Also, considering the strong reversal after the false break we can expect a new ATH in the near future and 17500 can be the bulls target
My Forecast for 2022 Maret!First I want to express my gratitude to the +9000 Tradingview users who started following me in 2021 and supporting me with their likes and comments. I wish you all a year full of successful trades.
I also appreciate the @TradingView team's efforts to make the platform stronger in the past decade, it gives me more energy to write more detailed analysis, Nice job..!
Let's Go:
In these charts, you see S&P 500, Nasdaq 100, Dow Jones, and Russell 200 monthly charts and their rate of change(12).
As you can see the highest 12 monthly rates of change were recorded at the end of February 2021, for all major indexes, and then markets slows down!
2021 ends with an overall performance of :
SPX:+26.89%
NDX:+26.63%
DJI:+18.73%
RUT: +13.7%
* Better to adjust these gains for Inflation which is at the highest level in the past 4 decades (+6.8% YOY).
As it is obvious it was a bad year for small caps which leads the market by +90% return by February 2021 and they end the year at the lowest rank of performance by +13.7. Their performance loomed in the past 10 months, and more than 77% of that glorious gains melted in front of the eyes of novice investors who were looking for their tickets to the Moon or Mars or other planets..!
Now, let's review the previous analysis:
A review on my analysis 3 weeks ago..!
On December 16th, 2021, I published one analysis:
In that analysis, I mentioned that higher than normal volatility is expected and Money shifts to Banks, Energy, and Telecoms.
Complex correction is the most probable scenario!
Higher volatility (increased ATR):
looking at the performance of indexes in the past 3 weeks shows:
Dow Jones: +6.42%
S&P 500: +5.64%
Russell 2000: 5.07%
Nasdaq 100: 3.75%
Now let's review the performance of the sectors and industries I mentioned in the previous analysis:
Energy: +9.74% in the past 3 weeks(Equally weight-adjusted)
OXY:+14.47%
VLO: +12.62%
PSX: +12.24%
MPC: +9.96%
XOM: +8.28%
COP: +8.24%
CVX: +6.14%
BP: +6.09%
Banks: +6.64% in the past 3 weeks(Equally weight-adjusted)
WFC: +10.47%
BAC: +9.39%
GS: +6.47%
MS: +6.16%
JPM: +6.03%
C:+1.32%
Telecom: +2.83% in the past 3 weeks(Equally weight-adjusted)
T:+9.29% (max:+10.66%)
VZ: +3.99%(max:+4.4%)
TUMS: +1.14%(max:8.68%)
CMCSA: -3.07%(max2.55%)
Overall performance of the 18 stocks:
+7.18% in the past 3 weeks(Equally weight-adjusted) which is:
12% better than DJI(+6.42), 27% better than SPX(+5.64%), 41% better than RUT (+5.07%) and 91.4% better than Nadaq100(+3.75%) ..!
17 out of 18 stocks had positive returns.
14 out of 18 stocks beat the Nasdaq performance in the same timeframe!
10 out of 18 stocks beat the performance of all 4 major indexes mentioned above!
Conclusion:
1-The Energy and Banks sector could continue their rally in January 2022..!
2-Tech stocks especially those which still burn cash, will experience a hard time in 2022, and any positive must be considered as transitory!
3-Small caps may experience lower prices and even Negative returns in 2022.
4-SPX, NDX, and DJI could have 10-15% returns in 2022.
5-Keep in mind that 12 monthly rates of change decreased by half in the past 10 months for SPX, NDX, and DJI which means expected market ROI should be lower in 2022 in comparison to 2021 and 2020!
6-For small caps this phenomenon is even worse, they lost 85% of their gains, and continuation of this phenomenon could lead to a negative return in 2022. ( Fundamentals also support depreciation of unprofitable business in high inflation era)
7- 2022 will be the year for those who know how to handle high volatility! A year for aggressive portfolio management strategies!
I will provide updates for this analysis as needed.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
NASDAQ RSI hit the long-term Buy ZoneNasdaq is giving a double long-term buy signal as besides the RSI on the 1D time-frame entering the Buy Zone that has been in effect since the March 2020 market crash, the price itself hit the Higher Lows trend-line that has been holding since the November 2020 U.S. elections bottom. The 1D MA200 (orange trend-line) is right below as it was on all 3 major bottoms of 2021 (March 05, May 13, October 04).
We expect the Channel Up top again around 18000 (1.786 Fibonacci extension) by the end of March.
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