NASDAQ poised to test bottom of trading range again
The NASDAQ decline on Tuesday simply erased the gain on Monday without providing any clear indication of any emerging trend. Still, it did highlight some weakness and clear evaporation of bullish interest, so now traders are greenlighted to make a serious test of whether the bottom edge of the trading range will hold or whether a full-blown mini-correction is in order.
NASDAQ futures are down moderately strongly, but the question is how people will respond after the open. Will they pile on and follow the market down, or will some significant dip-buying emerge? It may take an hour or so before the response becomes clear. Sure, this could turn into a rout, but it could just as easily bounce strongly after the opening dip and become a solid double bottom for this lower edge of the trading range.
It could take a couple more days to sort this out. Expect lots of volatility
And, no, none of this is about Russia or Ukraine or Gaza. Those are just noise to cover what people are actually doing behind the scene.
-- Jack Krupansky