Nadaq 100 Short-Term Update

Nasdaq 100: 2181.87

Short-Term Trend: downtrend

Outlook: Nasdaq 100 declined to 2035 but then managed to stage a rally and to close the week with small losses only. The sharp reversal from the 2035 low signals the decline from the July top is over, but you know, the upside potential appears rather small at this stage – upto 2236 level. Since we are most likely in a bear market, the oversold rallies are sharp but short-lived. So, we expect another leg lower sometime this week to re-test the last week's low.
On the upside, only sustained trading abv 2250/60 will be a cause for concern for the bears…

Strategy: Shorts favorable at 2235. Stop=2285. Target=2075.

About the author: Alexander Nikolov

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