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Nasdaq100 (NQ) Retesting 38.2% Fib Retrace of Aug-Oct Slide

Nasdaq100 (NQ) Retesting 38.2% Fib Retrace of Aug-Oct Slide

Posted December 6, 2022
Darren Chu
Tradable Patterns

Nasdaq100 (NQ) Retesting 38.2% Fib Retrace of Aug-Oct Slide

Nasdaq100 (NQ) is showing fatigue in its Dead Cat Bounce off the October low, sliding back to just above the 38.2% Fib retrace of the August to October slide.  Odds are fairly low for NQ to extend higher within its Oct-Nov Dead Cat Bounce before the Xmas lull to the 61.8% Fib or the weekly chart downtrend/descending wedge resistance.  Volatility will surge Friday with the US’ core PPI and PPI, and preliminary UoM consumer sentiment.  The escalation in the Ukraine-Russia conflict deserves close monitoring.  Congratulations to paying subscribers who benefited from the Oct 18, 2022 analysis highlighting the early stages of a month plus Dead Cat Bounce, the Jan 18, 2022 warning of the NQ keeling over on a monthly chart, the alert February 18th, 2020 one day before the record high in the S&P500, warning of a pending slide in the Nasdaq100 and from the March 24th, 2020 report highlighting the looming multi­day to multi­week rebound in NQ.  The weekly RSI, Stochastics and MACD are rallying or consolidating recent gains, weighed by the daily MACD which is trying to negatively cross.  I am looking to enter short in the red zone (of the daily chart), targeting the green zone for Monday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on S&P500, RAW SUGAR

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Source: Interactive Brokers TWS

Sample of Today’s Top 3 Trades Available to Free Subscribers (published Apr 14, 2021

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