Short
Time to short the NASDAQ?
While the bullish calls are mounting by the day, technicals seem to indicate that we'll either enter consolidation for the next few weeks, or experience a pullback. A few things to watch out for.
PRICE - Intraday high has for 3 days printed lower and lower numbers. Typically a negative, but if the 4165 level holds it could just be a sign of the market taking a breather.
ACCUMULATION - May have topped out, but with foreign markets starting to turn ugly, the NASDAQ might experience a rush of buyers looking for a safety zone...or not. Any quantitative ease in foreign markets could send this level lower, at which point I would be certain of a pull-back in the following days.
MACD - No, it hasn't crossed to confirm it's pulling back, but it does look like the market thinks we're fully valued. Without a lot of reasons coming up this quarter to push valuations higher, the path of least resistance appears to be lower.
PRICE - Intraday high has for 3 days printed lower and lower numbers. Typically a negative, but if the 4165 level holds it could just be a sign of the market taking a breather.
ACCUMULATION - May have topped out, but with foreign markets starting to turn ugly, the NASDAQ might experience a rush of buyers looking for a safety zone...or not. Any quantitative ease in foreign markets could send this level lower, at which point I would be certain of a pull-back in the following days.
MACD - No, it hasn't crossed to confirm it's pulling back, but it does look like the market thinks we're fully valued. Without a lot of reasons coming up this quarter to push valuations higher, the path of least resistance appears to be lower.
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