Is Nasdaq at the brink?
To the dismay of many, NQ is currently trading at 14664.00 that was the weekly close of Oct 20, 23. And Price momentum would indicate further downside of price. But how much more?
First let’s bring back into perspective the state of DXY.
If you ask why then it is because if we encounter a stronger dollar in market conditions it reduces an investors reach. A stronger Dollar signifies that everything will be more expensive to produce, purchase or consume.
So typically a strong Dollar would equal weak equities.
Bullish Dollar = Bearish Equities
Dollar right now is in a Bullish trend and currently consolidating in a Bullish Flag Pattern. The expectation is for price to break to the upside of this consolidation giving us a Bullish continuation and therefore a Higher High.
With the expectation of a Bullish Dollar it would be easy to say that obviously NQ’s price will continue to drop as well… Here we have to be more cautious.
Lets look into NQ’s Top down analysis and see what we come up with.
- Monthly
- NQ stablished a Lower High at 13257.75 this was in the Month of July 23. Since we have continued to see Lower Lows on the Monthly candles.
- I would like to point out that we are also returning to the 50% of the previous Bearish range on the Monthly. This can be significant.
- Weekly
- Looking at the Weekly timeframe we see a strong weekly close at 14664.00.
- This close and weekly momentum can indicate a further push to establish Lower Lows if 14586.00 is breached. ( This is my short term expectation)
- The reason I am being careful here is due to this being the last week of the Month and price at the brink of making a Lower Low on the weekly. Typically the Monthly candle will retrace some of its previous movement. Also price once Lower Lows are established could begin its trajectory towards a Lower High.
- But keeping my eyes not only on the potential breach of 14586.00 but for price to even reach as low as 14437.5.
- Daily
- We see on the Daily the downward extension of price these last four days. A considerable drop or I would describe as a controlled descent.
- We can see a break away gap on this price drop between Thursday Oct 19, 23 and Friday Oct 20, 23.
- I would be looking for price to be drawn towards this area at some point. Possibly after breaching the lows at 14586.00
So in conclusion NQ’s price has dropped as we had previously expected. But can price continue downwards without break.
We will see this week and the beginning of next Month.
For now price has enough momentum to continue downwards and establish the new Lower Lows and I would just focus on that.
Stay safe.
To the dismay of many, NQ is currently trading at 14664.00 that was the weekly close of Oct 20, 23. And Price momentum would indicate further downside of price. But how much more?
First let’s bring back into perspective the state of DXY.
If you ask why then it is because if we encounter a stronger dollar in market conditions it reduces an investors reach. A stronger Dollar signifies that everything will be more expensive to produce, purchase or consume.
So typically a strong Dollar would equal weak equities.
Bullish Dollar = Bearish Equities
Dollar right now is in a Bullish trend and currently consolidating in a Bullish Flag Pattern. The expectation is for price to break to the upside of this consolidation giving us a Bullish continuation and therefore a Higher High.
With the expectation of a Bullish Dollar it would be easy to say that obviously NQ’s price will continue to drop as well… Here we have to be more cautious.
Lets look into NQ’s Top down analysis and see what we come up with.
- Monthly
- NQ stablished a Lower High at 13257.75 this was in the Month of July 23. Since we have continued to see Lower Lows on the Monthly candles.
- I would like to point out that we are also returning to the 50% of the previous Bearish range on the Monthly. This can be significant.
- Weekly
- Looking at the Weekly timeframe we see a strong weekly close at 14664.00.
- This close and weekly momentum can indicate a further push to establish Lower Lows if 14586.00 is breached. ( This is my short term expectation)
- The reason I am being careful here is due to this being the last week of the Month and price at the brink of making a Lower Low on the weekly. Typically the Monthly candle will retrace some of its previous movement. Also price once Lower Lows are established could begin its trajectory towards a Lower High.
- But keeping my eyes not only on the potential breach of 14586.00 but for price to even reach as low as 14437.5.
- Daily
- We see on the Daily the downward extension of price these last four days. A considerable drop or I would describe as a controlled descent.
- We can see a break away gap on this price drop between Thursday Oct 19, 23 and Friday Oct 20, 23.
- I would be looking for price to be drawn towards this area at some point. Possibly after breaching the lows at 14586.00
So in conclusion NQ’s price has dropped as we had previously expected. But can price continue downwards without break.
We will see this week and the beginning of next Month.
For now price has enough momentum to continue downwards and establish the new Lower Lows and I would just focus on that.
Stay safe.
Trade closed: target reached:
Beautiful downside continuation before retracement
Comment:
I do apologize for not updating this...
Comment:
Seems I was too conservative
