NASDAQ at major support - Only 7% above pre-COVID ATH
Updated
After a monstrous rally of 152% off the 2020 COVID low, that NASDAQ is now only 7% above the pre-COVID ATH on 2/19/20. You can see in the chart that the correction has bounced on but ultimately lost all of the major trend lines since 11/22/21.
It currently is at one of the last major support lines. You can see the big rally last week was a major test of the purple channel's support (Wyckoff spring or shakeout). Price is also jumping around the mid-line of the down channel. This would be a good place for the NASDAQ to hold. I would expect more testing of the support before moving towards the top of the channel.
Otherwise, a hard drop to the 9,750-10,000 level around the end of October would test:
1) the purple trend line off the COVID low,
2) the correction channel support, and
3) the pre-COVID ATH.
IMO, that would be a good place to start going long. If that does not hold, then a drop to the 9,500 or even 8,900 would be on deck.
It currently is at one of the last major support lines. You can see the big rally last week was a major test of the purple channel's support (Wyckoff spring or shakeout). Price is also jumping around the mid-line of the down channel. This would be a good place for the NASDAQ to hold. I would expect more testing of the support before moving towards the top of the channel.
Otherwise, a hard drop to the 9,750-10,000 level around the end of October would test:
1) the purple trend line off the COVID low,
2) the correction channel support, and
3) the pre-COVID ATH.
IMO, that would be a good place to start going long. If that does not hold, then a drop to the 9,500 or even 8,900 would be on deck.
Note
Good rally heading into the end of today. Here is what to watch for next week.
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