Stock, Dow Jones Industrial Average, Stock market, Nasdaq #TradeTalks: An update on levels to watch in the Nasdaq-100. #DailyNDX

The ndx has been the barometer for us large cap growth and also one of the best performing indexes over the last decade and a half not to mention one of the most liquid index ecosystems in the world joining me this monday afternoon we have christiere warren managing Director with nasdaq smart intelligence desk for an update on technical levels to watch in the nasdaq 100 and chris uh looks like stocks are a little bit volatile to kick off the week of february 22nd, absolutely it’s. Definitely a value versus growth story. Here, if you look at the different indices, nasdaq composite and the nasdaq 100 have been leaders uh, basically on the tech back and when you have a little bit of differential moving in here, especially with bond yields. Rising. The tech story is really not as attractive at these multiples at the moment and that’s. Why you’re seeing the ndx, taking a little bit of a hit today, uh on the back of that you’re, seeing energy rising in some of the older value stocks getting that bit up this morning, that’s? Why there’s such a divergence between the nasdaq and say the dow jones industrial, which is positive on the day today? You know we’re down about one and a half percent um, but looking at the chart, when we go to it you’re going to see that it’s really still a very bullish looking chart, we haven’t broken that gap lower yet, and the ndx has a little bit room To run, but we need a little bit of consolidation here so and let’s take a look at your first chart here.

What are some of the specific levels you’re? Looking at very specifically, you had a gap lower opening this morning and where we’re looking at here is the february first high of that was 13 280. we’re trading, just above that now about 13 320, and we really don’t want to see the index touch. That price point or close below it, that means that you’re going to have a little bit of a rounding top here and that will move it closer to support, which is the 50 day moving average at 13.086. So what you’re looking at here is gap down kind of filling that little void where we gapped up on the first and you don’t want to see that filled. What that means is that the selling’s coming to um it’s, starting to pick up the buying, is coming to crescendo and to verify that you look at the relative strength index for the index and that’s standing at a 47. that’s telling me that you’re still in a Serious sell condition, remember: rsi, measures buying and selling from zero to 100. A measure of 30 is oversold, so we’re not at that oversold condition. Yet there’s still room to the downside here. What we’re looking at here is again that value versus growth, trade and the nasdaq 100 is absolutely a value based index for most of its members. So what you’re looking at here is. Hopefully this will stop soon if it doesn’t we’re going to test that 50 day.

Moving average that should give it support. It has given the index support for the last four months, and that trend should continue if it doesn’t, then we’re gon na have to reevaluate the chart and take another look at the index, all right and finally um. For our last chart here, we’re taking a look at the specific movers within the index, you know tesla had some news out um this morning and over over the weekend, that’s leading us to the downside, that’s chipping a weight of almost 40 points down six over six Percent and then you get the other heavy weights as usual on to the downside, leaving a slower apple, microsoft, amazon, all shaving off another 20 to 30 points between the top four stocks, you’re losing 100 points on the index. On the positive side, you’ve got some good um news in the travel industry with the reopenings, hopefully moving forward, as well as content uh on viewing so comcast booking marriott all doing very well today, um all at unfortunately, you know they’re all up anywhere from three to Five percent, but the point told, was only about three to three and a half percent for each one of those winners, so the offset is definitely the larger way to tech themes are dragging the index down all right.

What do you think?

Written by freotech


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