Market Analysis (16 March’21)

The Dow Jones Industrial Average and S&P 500 retreated from record levels Tuesday, as a morning rally in technology shares lost steam.

TREND ANALYSIS

After today’s session, all four indices remain in an UPTREND on all timeframes.

FUTURES PRICE LEVELS

Nasdaq

The Nasdaq index retraced exactly 61.8% of the February-March drop today. While the longer-term as well as the shorter-term trends remain to the upside, it will be important to observe how market participants react to tomorrow’s FOMC meeting announcement. Key price pivots are: 13250 — bullish if above, and 12700 — bearish if below.

NQ, 1h

MARKET INTERNALS ARE WEAK

The recent highs on Nasdaq came on divergent market internals. Particularly, the Nasdaq’s Advancing-Declining Issues indicator formed a clear bearish divergence with the index itself. Given poor market internals, it makes sense to be extra protective going into tomorrow’s session.

ADQDC and NDX, 15m

Leave a Reply