Nasdaq 100 - Institutions sell their assets at a record pace!
Updated
After the bear market rally, the Nasdaq 100 index made a new low in tandem with our expectations. Currently, the price of the Nasdaq 100 index exhibits rounding on the hourly chart. We will pay close attention to this development and volume levels, especially as it gets closer to the FOMC. Further, we expect the FED to worsen the economic situation, eventually culminating in a stronger selloff. Ahead of the FOMC and throughout it, we will seek declining volume accompanying the rising price of NQ1!. That will be a bearish sign of a faltering rally (in today's price). Overall, we maintain a bearish outlook on the Nasdaq 100 index. Our new price target for NQ1! is 11 250 USD and 11 000 USD. Our new price target for QQQ is 275 USD and 270 USD.
Fundamental factors
News outlets report that institutions are selling their assets at a record pace. Today, the FED is likely to raise interest rates by 75-100 bps. If it proceeds with 100bps, then that would be the biggest rate hike since the 1990s. We expect this to weigh on the economy and drag it lower. Additionally, we expect the same from the reduction of the FED's balance sheet.
Illustration 1.01
The picture shows the actual rounding on the hourly chart. We will monitor it closely as there is potential for the cup and handle pattern to form. That will be a bearish development.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
NQ1! trades around November 2020 value.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Fundamental factors
News outlets report that institutions are selling their assets at a record pace. Today, the FED is likely to raise interest rates by 75-100 bps. If it proceeds with 100bps, then that would be the biggest rate hike since the 1990s. We expect this to weigh on the economy and drag it lower. Additionally, we expect the same from the reduction of the FED's balance sheet.
Illustration 1.01
The picture shows the actual rounding on the hourly chart. We will monitor it closely as there is potential for the cup and handle pattern to form. That will be a bearish development.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
NQ1! trades around November 2020 value.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade closed: target reached
All our price targets for NQ1! and QQQ were reached.
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Disclaimer
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