Nasdaq 100 - Bear market rally shows loss of momentum

1 thg 6, 2022

The Nasdaq 100 futures erased some of their early gains. Currently, NQ1! trades around 12 600 USD. We continue to be bearish on the index as we think that the current rally is indeed a “bear market rally”. As a result, we expect the bearish trend of a higher degree to resume and the market to continue toward new lows. Today we will pay attention to the close price.

Technical analysis - daily time frame
RSI, MACD, and Stochastic flatten. DM+ and DM- failed to produce bullish crossover. Overall, the daily time frame is bearish.

Illustration 1.01

We will watch today's close price. If it is above yesterday's close price, it will be a bullish sign; however, if the NQ1! closes below yesterday's close price, then that will hint at the possible deterioration of the rally's momentum

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.