Nasdaq showed a crazy 5% drop before Christmas and an insane recovery soon after. I have mixed feelings about this. A lot of mixed signals are coming from this market and it is really hard to determine what the next move will be. Eventually we are in a big correction wave on the long term trend that could easily turn into a new bear market wave after breaking some important trend supports. However, I don't think this will happen that easy. This drop caused nasdaq to drop under a very important support line which can also be seen as the 0.618 FIB support. That one turned into a resistance and the 4% bounce stopped there.
For now we are bouncing between 0.5 fib and 0.618 fib which is also a very big resistance. I expect this down movement of today to continue for a while. Maybe some more red days where we might test the 0.5 fib support and long term trend support again. But it is so hard to tell due to the heavy volatility.
Be careful trading.
For now we are bouncing between 0.5 fib and 0.618 fib which is also a very big resistance. I expect this down movement of today to continue for a while. Maybe some more red days where we might test the 0.5 fib support and long term trend support again. But it is so hard to tell due to the heavy volatility.
Be careful trading.