Nasdaq (NDX, NQ1, QQQ) more record highs as Nasdaq leads and Tesla breaks out again


  • Nasdaq breaks more records on Thursday as the index outperforms all others.
  • Thursday sees the move accelerate with a gain of 1% so far!
  • Tesla again the leader with a 4% surge.

Update: The Nasdaq continues to lead equities higher with another powerful surge in early trading on Thursday. Tesla (TSLA) once again leads the way with a 4% gain while other names on the move include Peloton (PTON), AMD and Match (MTCH). 14,250 holds the short term bullish trend in place.

The Nasdaq has taken over a leadership role in the equity indices space as markets overall remain strongly bullish amidst the highly accommodative Fed policy. The buy the dip strategy has proven once again to be the only show in town, and with monetary policy this accommodative, why not? 

Market breadth remains a cause for concern with the number of stocks above their 200-day moving average well below peak and stocks making new highs also well below peak, though both have bounced this week. What we are seeing, however, is a strong surge led by strong stocks. Big tech and FAANG names continue to lead the way. GOOGL and FB made new record highs this week, and Apple finally showed some strength and broke out of its slumber, see here. Tesla staged a powerful break of the $635 level we identified on Wednesday, see here.

Nasdaq (QQQ NQ) stock forecast

Using the futures contract that mirrors the QQQ ETF shows the continued strong uptrend holding nicely. Friday's dip buying in the Dow and S&P 500 was not exactly a dip here as the Nasdaq has taken over the leadership role. The 9-day moving average (MA) is the perfect foil, guiding the trend higher. As long as it remains above this MA, the risk reward remains skewed to the upside. The Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI) and the Commodity Channel Index (CCI) are all trending higher, thereby confirming the price action. Support remains from the previous record high period in April/May at 14,053, as this corresponds with the lower end of the trend channel. Below that, 13,800-13,700 is a high volume zone, and 13,462 is the last "buy the dip" support zone. 

The Relative Strength Index (RSI) does look to be heading for overbought regions, so keep a close eye on this one.

The hourly chart below gives us some more detail and shows that a break of 14,250 sees a bit of a volume gap beneath, so the price could accelerate to 14,130 if this breaks. 120 points is not much, but it is good enough for some intraday scalping if it works out. 

 

 

 


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