US deposits safe? Don’t bank on it Nasdaq bulls
Sentiment on Wall Street took a turn for the worse by yesterday's close. Janet Yellen conceded that she has not considered a "blanket insurance" for US banking deposits, and Jerome Powell pushed back on any hopes of rate cuts from the Fed this year.
The Nasdaq 100 came close to reaching out 13k target before momentum reversed sharply lower, closing the day with a bearish outside / engulfing candle. It also saw a false break of the prior cycle high and clos back beneath the upper bollinger band, with a bearish divergence on the RSI (2).
- The bias is for prices to mean revert towards 12,230 / 20-day MA, with 12k and the March lows also contenders for bearish targets.
- The bias remains bearish below 13k, but yesterday's high can also be used is a tighter approach to risk management is required.
The Nasdaq 100 came close to reaching out 13k target before momentum reversed sharply lower, closing the day with a bearish outside / engulfing candle. It also saw a false break of the prior cycle high and clos back beneath the upper bollinger band, with a bearish divergence on the RSI (2).
- The bias is for prices to mean revert towards 12,230 / 20-day MA, with 12k and the March lows also contenders for bearish targets.
- The bias remains bearish below 13k, but yesterday's high can also be used is a tighter approach to risk management is required.
