I’m sure many readers will be thrilled when the Nasdaq no longer qualifies for The Daily Breakdown. With Wednesday’s close below the 200 day moving average, unfortunately this breakdown cannot be ignored.
Do not mistake this post as a predictor of what is to come. Instead, use it to mark exactly where things stand so that it will be clear when something different starts to happen.
The blue down trend line is lying almost directly over top of the 9 day simple moving average. Until the index closes and holds above this line, nothing changes. As I’m sure the bulls are beginning to get wary of failed bounces, a conservative strategy could be to not even consider bounce plays until the Nasdaq gets above this most recent downtrend line.
When a bounce occurs, I expect that resistance will be at whole numbers, namely at 2600 and 2700.
Â One final note. I do not know if in reality things are as bad as the market is perceiving them to be. I do know that as Fly has said, the most abundant opportunities present themselves at the bleakest of times.