“The NASDAQ continues to outperform at the moment and yesterdays action saw a new higher peak. So this is looking good for the bounce to continue but the big test is up at 1288 and this will not be an easy level to break.”
Our last NASDAQ report was calling for a test of1288. Well we did get this with a high of 1286 followed by a second high of 1287. This was followed by a sell off reinforcing the strength of this level. However, this was yet another higher dip so the Bulls remain in short to medium term control. Long term the Bears still hold the baton all the time we are below our Fibonaccias shown on Retracement the smaller weekly chart at 1490.
Indicators in play.
Fibonacci introduced his sequence of numbers to mathematics back in the 1200’s. These numbers appear in all walks of life but have an eerie influence on trading. We use the 38.2 level as an indication of the strength of the correction or indeed if the longer-term trend has changed.
We are going with the Bulls again for another test of 1288. We are not as keen on an exit there this time and feel we could push through. Our stop would be at 1203.