The levels I talked about last night did indeed get tested today and most of them failed. The Nasdaq and S&P 500 broke their 50-day moving averages. While the Nasdaq managed to bounce off of its October trendline the QQQQ/NDX broke its October trendline. The NDX was down 1.26% vs. .83% for the Nasdaq Composite. Big drops in Nasdaq 100 members such as APCC, AMZN, ADSK and GOOG contributed to the under-performance of the large caps.
I was surprised that volume on the major indices contracted given those important levels breaking. Maybe the bears were worried about peace breaking out over the weekend! (Volume on the NDX/QQQQ increased though.) Given the volume action and the fact that the indices are really just going sideways it’s tough for me to get worked up over these broken technical levels. The one chart that concerns me the most is the QQQQ. Now that it broke that October uptrend I see an air pocket down to the $40 area. Not to mention all the distribution days it’s had recently. Does it drag the Nasdaq down? Stay tuned…
Mike,
There is probably a good explanation, but if you look at the $COMPX volume in your chart, today’s volume higher than any volume from early November through to the early part of January.
Now it could be new IRA money being put to work, but perhaps this is significant volume given the latest trend is only slightly down.
Regards,
Englishman Trader