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Nasdaq100 weekly MACD negatively crossing

Nasdaq100 (NQ) slid more than 2% Friday reversing roughly 2/3rds of the prior week’s gains.  Although the February high last week was slightly above the January high, the February high so far has failed to recapture the record high formed in December. Before bears get excited, NQ will need to break below the February low, which would likely coincide with a test of the 2025 low in January.  Any sharper downturn unwinding the gains of the last since the August low is not likely in Q1 for now but would suggest that NQ has made its high for the major bull market extension that began late 2022.  Regardless of the elevated odds for some short covering Monday, volatility is likely to return as early as Tuesday with the US CB consumer confidence, and more so by Thursday with the US preliminary GDP and unemployment claims and Friday with the US core PCE price index. The weekly, daily and 4hr RSI, Stochastics and MACD are tiring or steadily sloping down. I am looking to enter short in the red zone (of the daily chart), targeting the green zone for Friday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  

Weekly/daily/4hr

Author

Darren Chu, CFA

Darren Chu, CFA

Tradable Patterns

Darren Chu, CFA, ex-Intercontinental Exchange | NYSE Liffe, TMX Group, CMC Markets, is the founder of Tradable Patterns – a publisher of futures/FX technical analysis on Bloomberg, LSEG (Refinitiv) and Factset.

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