With the recent market rally, it seems the bulls are trying to come back in full force. I am not quite there yet. In fact, I am still more bearish than bullish. The Nasdaq (COMP) did close above the 200 day SMA yesterday. Today we opened above that same key technical level. In fact, we are finding support at this level currently as I write this commentary. There is a key factor I am looking for TODAY. I want to see the COMP close above this level after finding support. Immediate support at previous important resistance level is quite bullish. If it closes below and unravels the following day, it will be considered bearish. Today could be a very important day for the markets outside of the FOMC news. I didn’t expect the news to be earth shaking and it wasn’t, however it seems a lot of technical traders are missing this key element. I have been pretty spot on in my videos regarding the markets as of late. Let’s see if I can keep my streak intact. Expect today to be extremely important for the near-term future for the markets. Outside of global news, we can see today’s result have a butterfly effect on the markets for the rest of the year.
I highlighted the Nasdaq chart below and circled the level of importance. The teal blue line is the 200 day SMA on a daily chart and the red arrow showed the previous rejection at said level. The upper white line is the old swing high and that is a key factor of resistance also. In the immediate term, my focus is on the 200 day SMA.