Did the NASDAQ 100 Put In a Major Top? Understanding Recent Market Movements
Recent Market Movements and Analysis
The NASDAQ 100 (NDX) recently peaked at $19,643 before retracing. Observing patterns, it is essential to evaluate key price levels and market trends. The index has shown resilience, consistently holding above critical warning levels while indicating bullish trends.
The Weight of Evidence Approach
To determine if the NASDAQ 100 has put in a major top, we must critically analyze various market perspectives:
- Price Patterns: The analysis indicates higher highs and higher lows, suggesting bullish sentiment.
- Technical Indicators: Positive signs prevail, with a rising 10-day SMA and favorable RSI levels.
- Elliott Wave Principle: Currently, the EWP count indicates possibilities but requires further confirmation.
Monitoring Key Warning Levels
The NASDAQ has set several warning levels to assess potential declines:
- 1st Warning Level: $19,330 - Indicates a radar lock for bulls.
- 2nd Warning Level: $19,750 - A crucial support point.
- 4th Warning Level: Break below this signifies a possible trend reversal.
As of now, the NASDAQ 100’s momentum remains intact; however, continuous monitoring of these levels will be vital.
Conclusion: What Lies Ahead?
Although the EWP hints at a potential significant top, confirmation requires a breach of notable support levels. Investors should remain vigilant while conditions support bullish behavior.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.