Recap NQ dropped to Y-2 as expected. Very strong reaction there but not enough to stop the train. Retest of week low led to consolidation at the bottom with another flush lower. Google news and then earning report 2 days in a row in afterhours messed up the chart hard. Closed the week below Y-1 and above midpoint.
Outlook Google is the only reason why NQ was not closed at the low of the week. It is the only reason why Y-3 was not tagged. As mentioned before, this market is led by just a few names to the upside and Google is pretty much the last heavyweight standing.
Chart pattern suggests that NQ is in the counter-trend run from the 3 pushes down / falling wedge setup made earlier last week. Upside target is already tagged. NQ must clear B+1 first on daily basis to stand a chance at finding support at B-0.
For now, daily down trend in place and until invalidated, B-1 likely to be retested within a week or two.
Nasdaq 100 Feb 03 to Feb 07 Outlook
Lawrence’s Comment
NQ dropped to Y-2 as expected. Very strong reaction there but not enough to stop the train. Retest of week low led to consolidation at the bottom with another flush lower. Google news and then earning report 2 days in a row in afterhours messed up the chart hard. Closed the week below Y-1 and above midpoint.
Outlook
Google is the only reason why NQ was not closed at the low of the week. It is the only reason why Y-3 was not tagged. As mentioned before, this market is led by just a few names to the upside and Google is pretty much the last heavyweight standing.
Chart pattern suggests that NQ is in the counter-trend run from the 3 pushes down / falling wedge setup made earlier last week. Upside target is already tagged. NQ must clear B+1 first on daily basis to stand a chance at finding support at B-0.
For now, daily down trend in place and until invalidated, B-1 likely to be retested within a week or two.
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