Sellers pushed into the marketplace early this morning and continue pressing into the NASDAQ. Although a news bite may be the culprit, let us instead focus on the price action.
As I write we are making new overnight lows and they are carrying a bit of velocity. Should the algorithms sense buyer blood we may see trade down to 3511 – 3509.75 range, pressing any long initiated yesterday during RTH underwater.
It would make sense to test the sentiment of the buyers early on after they lacked any real follow through on their rally yesterday. Should buyers not show up at the above range our next levels of support are the LNV at 3505.50 then the value area low at mezzo-century mark 3500.
Below the mezzo century we open the door to a 12/5 retracement, when an open gap still exists down to 3478.25.
However, I am still calling for a rally off these highs. Overhead I will look for signs of selling around 3519 (VPOC and gap fill) and yesterday’s high of 3525.
These levels can be seen on the following MP chart:
