The NASDAQ index continues to trade with more than one bearish bias. The low price today reached 13414.14. Yesterday the index was extended up to 13094.65. That was the lowest level since May 19 (8 months low). Yesterday’s low was stuck within the swing area between 13002.54 and 13220.16. Keep that level in mind going forward. A move below will have traders targeting the 38.2% retracement at 12552.36.
The sharp rebound from yesterday’s low was a welcome development. However, the price increase did not get the pair out of the woods.
The swing highs and lows back in February, April, June, July, October all came in close to 14204.51 (see red numbered circles). Returning above that level is necessary to provide convenience to consumers. The falling 100 hour moving average is still not playing at 14721.81. The 50 hour moving average is approaching 14302.28 (and decreasing). However with the price at 13436.13, it is still far away.
After Microsoft’s close report with Texas Instruments. Tomorrow morning Boeing reports before opening. After closing, Tesla, Intel, ServiceNow will all report. On the Thursday after closing, Apple will report their earnings.