Nasdaq Cycle Turning Bearish
Nasdaq daily cycle is putting lower highs indicating that price is now moving towards a cycle low, any upwards momentum can be expected to be halted by the blue resistance line. We can also see the median line of the Pitchfork is now acting as resistance. Bulls would not want to see price trade below the green horizontal line as this would represent a cycle failure (expect deeper drawdowns).
Once a cycle failure occurs then we can expect price to be seeking a weekly cycle low, this will be seen by price going below the upsloping pink line, in severe pullbacks price would visit the 200 DMA which is quite a sharp decline.
Once a cycle failure occurs then we can expect price to be seeking a weekly cycle low, this will be seen by price going below the upsloping pink line, in severe pullbacks price would visit the 200 DMA which is quite a sharp decline.
Note
Nasdaq's breakout from a triangle is almost failed, expect price to go below 18 August low as the SPX has already broken below its level.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.