Don't Ignore This Chart!

NASDAQ 100 Faces Major Support Test This Afternoon

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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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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