Don't Ignore This Chart!

NASDAQ 100 Faces Major Support Test This Afternoon

 | 

The European Central Bank (ECB) announced its latest quantitative easing measures and though they initially moved global markets higher, the focus now seems to have turned to ECB President Draghi's comment that further interest rate cuts aren't likely.  There is weakness across the board in the U.S. after a 30 minute boost propped up prices after today's opening bell.  It's been a steady decline since, however, and the NASDAQ 100 ($NDX) is currently facing a stiff moving average test at the rising 20 day EMA.  The NDX hasn't closed beneath that moving average at any point over the past three weeks.  Take a look:


The red arrows mark key price resistance and show the latest failed attempt at a breakout.  The bears defended a key level.  Now it's the bulls' turn.  Momentum has been surging to the upside during the last month's rally and the rising 20 day EMA has been holding during short-term bouts of selling.  Will it hold again?

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus