Nasdaq 100 - A new low confirms that downtrend will continue

Today, the Nasdaq 100 index erased its gains from the preceding day, hitting all our previous price targets for NQ1! and QQQ. Therefore, we would like to update our thoughts on the index. We remain bearish due to fundamental factors pointing to a strong recession. However, technical factors also support this pessimistic thesis. Due to that, we would like to set a new price target for NQ1! at 10 500 USD and 10 000 USD. We would also like to set a new price target for QQQ at 265 USD and 260 USD.

Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.

Illustration 1.01

Moving averages continue to confirm the downtrend. Although volume declines slightly, we will pay close attention to it. If volume continues to fall further, it might foreshadow an upcoming “bear market rally.” However, if the support is broken, then the selloff is likely to accelerate.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade closed: stop reached:

We remain bearish in the medium/long term. However, in the short-term, we think it is likely that we are currently starting to experience another bear market rally. Due to that, we abandon our price targets for QQQ and NQ1!.