One Technical Observation for $NQ

Bitcoin is breaking down finally, but I would feel more confident about us being in a crash were oil following suit, and it continues to resist total failure. That said, I want to point out one technical feature in support of (at least) a bounce on $NQ.

A lot of people ask me why I use the 250-day EMA instead of some other number or moving average type, and here’s a good example of why.

While everybody is celebrating the Nasdaq 100’s loss of its 200-day simple moving average, note that we’ve actually come to rest on the 250-day exponential moving average (green arrow on the right). And note, too, that during a total lockdown of all world economies with the emergence of an unknown virus, we still mustered an 11% bounce off of this moving average before (green arrow on the left). Now, $ES is near an important trend line (here), and the Nasdaq is at this EMA, so, no promises, but the potential for at least a strong bounce seems to me to be present here.

NQ


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9 thoughts on “One Technical Observation for $NQ”

  1. If we embark on a purple C wave to complete the triangle, that could be the David Hunter melt up. What would be the purple C wave target? What is that, an expanding triangle?

  2. It would just be a giant “zig-zag,” and would take us to some fib relationship with the length of A, which is stupendous. Could be 6,000, could go all the way to 9,000 (but I’m not particularly counting on that). We would attempt to count a 5-wave structure up.

    Too much more weakness here in the markets now will make this less and less probable.

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