NASDAQ: Is it time to go short?

Analyzing the NASDAQ, we see several significant factors. The quote is approaching weekly highs, and the performance over the last five days is positive, with a 0.35% increase, indicating strength in the market. However, the volatility over the last five sessions is higher than the three-month average, signaling a period of uncertainty and fluctuations. Nevertheless, both in the previous semester and in the last twenty sessions, a bullish price trend is observed, suggesting a positive long-term trend.

Looking at support and resistance levels, the main support area is at 17480.0, while the resistance area is at 18040.0. A potential trend change could occur with a drop below the support area at 17040.0, indicating a possible reversal of the bullish trend. The net speculative positions of traders on NASDAQ 100 futures have decreased compared to the previous week, reflecting some uncertainty among operators about future market prospects.

Monitoring the performance of the bond market is crucial, as an increase could shift demand towards bonds at the expense of stocks. Currently, the annual yield of the US ten-year treasury is increasing, which could influence the technical analysis of the NASDAQ.

Furthermore, a more detailed analysis at the H4 timeframe level reveals that the market is oscillating around a supply area, suggesting the possibility of a structural change. An approach could be to wait for a change at M15 and then consider entry on the retest of an M15 supply area, with a target at 17560. If the price closes completely outside the M15 supply area, it could change the perspective, requiring further confirmation before deciding on operations.

In conclusion, although the NASDAQ shows signs of strength in the short term, it is essential to evaluate volatility and support/resistance levels. Trader positions and the performance of the bond market provide further insights into market sentiment and future prospects. Greetings and happy trading to all.