The Dow Jones Industrial Average and S&P 500 retreated from record levels Tuesday, as a morning rally in technology shares lost steam.
After today’s session, all four indices remain in an UPTREND on all timeframes.
FUTURES PRICE LEVELS
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.
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