Nasdaq 100(NDX) & S&P 500(SPX) Price Look Extended; Risk of New Deadly Virus Found In China Will Push Markets Down

 In Uncategorized

The NASDAQ-100 Index futures hit a new record high on Tuesday, closing at $9,173. The index pushed higher carried by Google-parent Alphabet, which rose 1%, becoming the fourth U.S. company to top a market value of more than $1 trillion on Thursday. Looking at the chart we can see how the move up is extended now and  beyond the resistance trend line. While this by itself is not enough a good reason to consider a SHORT trade, given the prolonged move up in terms of price and time (quick move up), we believe that in the renaming of this week, we will see price reacting mainly to the spread of the new deadly virus found in China and the news related to its spread in China and around the world. For the reason we suggest traders to SHORT the Nasdaq 100 (NDX) at current level and look to sell half position when NDX move down to $9,000 price level.

In addition the S&P 500 (SPX) trading at $3,329 level look also too extended and we expect a similar reaction for the reasons mentioned above. Traders can SHORT current price and look for closing half position down at $3,265 and a second down at $3,220 level. Due to the news out and current technical setup this move can happen quickly.

Nasdaq 100 - Click for large view of the trade

Recent Posts

Leave a Comment

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt