Anatomy of a NASDAQ interim top
An interesting set of events just occurred in the NASDAQ futures. In early November, the NASDAQ (and most market indices) spiked in a bullish rally, only to find a resistance at about 12,000 in mid-November. It then retraced to test the support at 11,560. While it bounced off the support then, there was a momentary spike down to 11,528. This is the significant low for this consolidation range at the top of the short term rally. The bounce brought it to 11830, where a resistance level was failed. This was then followed by a revisit to the consolidation range support (bottom of yellow box).
About an hour ago, a lower low was triggered (red support line) and currently the NASDAQ futures is struggling to keep above the consolidation zone support.
Technical indicators MACD and VolDiv are slightly bearish, boding a more likely breakdown. MACD crossed under, and remains under the zeroline. VolDiv is not uptrending, but below its SMA, and looking for a breakdown below zero line.
Also noted is the green "BD" where it denotes a Break Down of an auto-plotted trendline support.
The price action is a little long to the downside, and has been support hugging. It is likely to have some sort of a rebound, but what happens next depends on whether there is more juice to sustain. A technical rebound is due and appears to be forming up at time of writing. Definitely, is there enough juice to get this to the upper part of the range?
The other thing here is that a decisive breakdown out of the consolidation range is needed and appears to be lining up for the later part of the week. This is invalidated IF a technical rally closes above 11850.
Wait for it...
About an hour ago, a lower low was triggered (red support line) and currently the NASDAQ futures is struggling to keep above the consolidation zone support.
Technical indicators MACD and VolDiv are slightly bearish, boding a more likely breakdown. MACD crossed under, and remains under the zeroline. VolDiv is not uptrending, but below its SMA, and looking for a breakdown below zero line.
Also noted is the green "BD" where it denotes a Break Down of an auto-plotted trendline support.
The price action is a little long to the downside, and has been support hugging. It is likely to have some sort of a rebound, but what happens next depends on whether there is more juice to sustain. A technical rebound is due and appears to be forming up at time of writing. Definitely, is there enough juice to get this to the upper part of the range?
The other thing here is that a decisive breakdown out of the consolidation range is needed and appears to be lining up for the later part of the week. This is invalidated IF a technical rally closes above 11850.
Wait for it...
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