July 12, 2024 at 04:21PM
The NASDAQ has had a quick rebound today and currently trades up around 200 points or 1.08%. The high prices just reached 18486.45.
As outlined in the video yesterday (“What would increase the bearishness in the Nasdaq today and going forward”), the low price yesterday broke below its 50-hour moving average, but fell short of the 38.2% retracement of the last trend leg higher at 18222.50. The low price reached 18238.16 (about 16 pips above that key target).
In the post, I wrote and warned:
If the price on a correction, cannot get below the 38.2% retracement of the last trend move, are the sellers winning? The answer is NO. The correction is just a normal, plain-vanilla variety in what is a bull market. The buyers are winning.
Well, the price decline yesterday could not get below the 38.2% and in trading today, the low for the day continued to find buyers at the rising 50 hour MA. That kept the buyers in control, and they have started to rethink the decline yesterday. The sellers are still not winning.
The next target will be the high from July 9 at 18511.89. Get above that, and traders will be looking toward the all time high from Wednesday at 18671.07. PS the highest close on Wednesday reached 18647.45. That level will also be an upside target on a break of 18511.89.
This article was written by Greg Michalowski at www.forexlive.com.
