Here are the the levels I will be watching on the NAS going into this week. We had a nice bounce on Friday to close out the week, but it is hard to tell whether or not it was just shorts covering before the weekend or actual buyers. The market is full of short term traders now and many were likely short and simply covered going into the weekend. Obviously the tech stocks are very weak right now and there is a lot of overhead resistance in this chart. Price has to battle though Fib, moving average and trendline resistance before it gets back to a bullish posture. . On top of that the news and social media narrative is very negative. I will not be feeling bullish again until price gets above the tan box and clears last week's high. Although it was obvious that the tech sector was getting over heated and due for a correction many quality names have been overly punished and should see some buying interest if bonds manage to rally soon. Unfortunately if bonds don't see some buying expect the NAS to break down further. A trip down to the 618 fib is possible. As I have said before. I am treating any significant bounce right now as an opportunity to reduce my overall exposure to tech names. I am also staying away from long options for the time being because the odds of sideways or choppy price action is high. Shorter term trades and smaller size are recommended.
Comentário:
The overhead resistance proved too much today and price fell back to the recent. lows. The only good new is that the NAS like the ES has a habit of re-testing lows before taking off so there is still a chance for price to find a base here. The 12800 level will be resistance until its not. I do not recommend starting any new tech names until that level is cleared.
