Nasdaq 100 Short-Term Update |
Nasdaq 100: 2253.86
Short-Term Trend: sideways
Outlook:
Last week I favored a long position on a pullback against the 2285 level. Well, I was wrong. The market broke firmly below the 2285 level and the immediate focus shifted on the downside. While the count presented a week ago is still valid (and if the market rallies this week, it will become preffered again), the odds right now have shifted in favor of the more bearish scenario presented above. It is actually the count that I used in August in September before the big advance in October. It implies that the uptrend from the Mar 2009 low ended earlier this year in July. And since late July a Flat pattern is under way. If correct, we will soon see weakness to new lows below 2040. A decline below 2185 will virtually confirm this outlook.
If the market manages to hold abv 2185 and then rallies back abv 2370, then the previous bullish count will be resurrected.
About the author: Alexander Nikolov
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