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Tuesday, May 11, 2021 8:16:37 PM
NDX Uptrend Broken, Support Under Pressure
By: Almanac Trader | May 11, 2021
It’s May and the market is selling off a bit, so seasonally speaking all is well but, technically speaking the market is under pressure. We continue to look to the NASDAQ 100 (NDX) as a leading indicator. NDX components are the largest technology companies that are the main barometers of the global economy and economic growth.
Invesco QQQ Trust (QQQ), what we affectionately call the “Qs” is the exchange traded fund (ETF) that tracks NDX. Top holdings are: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet – AKA Google – (GOOG & GOOGL), Tesla (TSLA) and FaceBook (FB).
As we head into the last hour of trading the market is trying to rally the close. DJIA has been hit hardest today like due to heightened inflation fears and concerns that the Colonial Pipeline cyber-attack has exposed an infrastructure weakness and could drive energy prices higher. Tech’s resilience today, especially the NDX is encouraging, however as noted in the chart here the near term uptrend from the March lows has been broken (big yellow box on the right) and support at 13200 came under pressure today.
You can see NDX is trying to reclaim the pink 50-day MA around 13375 and the green dotted pivot point support line at 13386. If these levels don’t hold there is some support at 13000 where the uptrend since September runs into at present. After that the March lows come into play again in the 12200-12420 area.
Either way we have likely seen the bulk of the upside for the time being. Seasonality is back on track and the Worst Six Months, May-October, are upon us. We issued our Best Six Months Seasonal MACD Sell Signal on April 22 and it continues to appear timely. No need to sell everything is May, but it sure is a good time to consider a “Reposition in May.”
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DiscoverGold
By: Almanac Trader | May 11, 2021
It’s May and the market is selling off a bit, so seasonally speaking all is well but, technically speaking the market is under pressure. We continue to look to the NASDAQ 100 (NDX) as a leading indicator. NDX components are the largest technology companies that are the main barometers of the global economy and economic growth.
Invesco QQQ Trust (QQQ), what we affectionately call the “Qs” is the exchange traded fund (ETF) that tracks NDX. Top holdings are: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet – AKA Google – (GOOG & GOOGL), Tesla (TSLA) and FaceBook (FB).
As we head into the last hour of trading the market is trying to rally the close. DJIA has been hit hardest today like due to heightened inflation fears and concerns that the Colonial Pipeline cyber-attack has exposed an infrastructure weakness and could drive energy prices higher. Tech’s resilience today, especially the NDX is encouraging, however as noted in the chart here the near term uptrend from the March lows has been broken (big yellow box on the right) and support at 13200 came under pressure today.
You can see NDX is trying to reclaim the pink 50-day MA around 13375 and the green dotted pivot point support line at 13386. If these levels don’t hold there is some support at 13000 where the uptrend since September runs into at present. After that the March lows come into play again in the 12200-12420 area.
Either way we have likely seen the bulk of the upside for the time being. Seasonality is back on track and the Worst Six Months, May-October, are upon us. We issued our Best Six Months Seasonal MACD Sell Signal on April 22 and it continues to appear timely. No need to sell everything is May, but it sure is a good time to consider a “Reposition in May.”
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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