Market Radar

House of Market Insights

Technical Analysis

The NASDAQ-100 Index is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. No security can have more than a 24% weighting. The index was developed with a base value of 125 as of February 1, 1985. Prior to December 21,1998 the Nasdaq 100 was a cap-weighted index.

<ul>
<li>NDX sub 13,000 and RTY 1,900+ have been the levels called to build fresh shorts with a tight risk level above 13k and RTY 1,930.</li>
<li>RTY trendline and price resistance is a compelling pivot/top are to turn the cycle south.</li>
<li>Let's not forget that we are still very much in a bear market cycle. Friday's US equity give back is a big step backward after Thursday's bull impulse.</li>
</ul>

<ul>
<li>NDX break of 12,500 pivot support was touted as the lead trigger for the SPX to break below 4,080 pivot support to step up short exposure and reduce longs.</li>
<li>NDX 12,500 and SPX 4,100 are now key resistance levels. RTY short from 1,900+ also staring to work.</li>
<li>NDX 12,100 is the next key support. SPX supports at 3,990 and 3,920 (the later more important). Cycle called to turn south around mid-June into late June.</li>
</ul>

<ul>
<li>Bear market results from sharp monetary squeeze as Central Bank liquidity withdrawn, led by Fed. More pain to come. Recession is here 
</li>
<li>
 US Federal Reserve is driving markets lower and USD up. QT has officially started, but Fed has in fact been secretly tightening liquidity for months</li>
<li>Effective Fed balance sheet likely to contract by US$2 trillion under QT plans, but policy error could easily force a bigger US$3 trillion correction. Wall Street at risk. 
</li>
</ul>

Nasdaq-100 Stock Index

Charts to Watch #4