I’m keeping an eye on a potential global recession NASDAQ 100Hey everyone, here’s my quick take on the NASDAQ 100 (NDX) and why I’m keeping an eye on a potential global recession:
1. Bearish Divergence on the Chart
We’ve got the price pushing higher while the RSI is sloping lower—classic bearish divergence. It’s a big red flag that momentum isn’t matching price action. Sure, it doesn’t guarantee a drop, but it definitely makes me cautious about chasing new highs.
2. Rising Wedge / Channel
The trendlines I’ve drawn suggest a rising wedge or narrowing channel. Those often break to the downside if buyers can’t keep the momentum going. I’m watching that lower boundary like a hawk—if we close below it, that’s usually a bearish signal.
3. Ichimoku Cloud Levels
We’re still hanging around the top of the Cloud, which means the longer-term trend isn’t totally broken yet. But if price falls into the Cloud or below it—and the Tenkan-sen crosses under the Kijun-sen—that’s another sign that sellers might be taking control.
4. RSI Confirmation
The RSI is showing that classic lower high pattern, which means the market’s losing steam. A drop below typical support ranges on the RSI (like 40-50) would back up the idea of a deeper pullback or correction.
5. Macro Picture & Recession Risks
The NASDAQ 100 is a pretty good indicator of market sentiment, especially for big tech. If we see a bigger breakdown here, it might hint at broader economic weakness. Combine that with ongoing concerns about inflation, interest rates, and global supply issues, and we have a recipe for recession chatter to get louder. I’m not saying it’s a done deal, but the chart is telling me to stay on my toes.
Bottom Line
Yes, the chart is flashing bearish signals, and the macro environment is still uncertain. If we break below key support levels, it could be the start of a bigger downtrend—potentially lining up with a global economic slowdown.
