Nasdaq looks to close the gap with its Wall Street peersThe Dow and S&P 500 extended their record highs on Monday, and the Nasdaq futures looks eager to jump out the gate during Asian trade and close the gap. And with asset managers increasing bullish bets on the tech-focused market, perhaps it can make a record high of its own.
MS
Wallstreet
SP500 seasonality and market positioning are at oddsOn one hand, seasonality for the S&P 500 and indices in general tends to be unfavourable in September. On the other, asset managers are 'all in' being long the index which sits just beneath its record high. We weigh up the competing factors to decide whether we should tread carefully around seasonality, or simply ignore it.
MS
ASX 200 mimics Wall Street's 'risk-on' rally into Jackson HoleOverbought indicators are of little use when markets are obsessed with rate cuts ahead of a key fed speech. Jerome Powell will speak at the Jackson hole symposium and Friday, and expectations for a dovish show are high. And that's helped Wall Street indices extend gains and the allowed the ASX 200 to tag along for the ride. But if this turns out to be a classic 'buy the rumour, sell the fact' tale, traders may need to factor in some of the overbought clues on the daily chart.
Nasdaq - We still have to be careful!TVC:NDQ is still retesting resistance after we just saw an expected rally of +75%.
More than a decade ago, the Nasdaq entered one of the most profitable and easy to trade patterns: a rising channel formation. In the beginning of 2023 the Nasdaq once again retested the lower support trendline in confluence with a retest of horizontal support and continued its bullrun from there. But currently resistance is ahead so we have to be quite careful and properly monitor price action on the smaller timeframes.
Levels to watch: $19.000, $16.000
Keep your long term vision,
Philip - BasicTrading