Nasdaq 100 (NDX) Trade Update – Closing All Remaining Position & Look for Correction Down!
Good morning traders, yesterday we saw the Nasdaq (NDX) hitting 8,873 high (8,900 for NQ futures), a 500+ points move since our trade signal on November 26th. Following collecting 200 points+ run on December 17, we suggested traders use a stop loss on remaining position. Yesterday, we saw price getting extended to a point of resistance, causing most traders to close positions and lock in profits before a meaningful price correction. Below, you can see our chart showing our trade and current recommendation to lock in profits on remaining position as well as our current view for a correction down to the $8,650 price level, in which the Nasdaq can regain support.
This is a follow up to our November 26th (NDX) trade review, in which we highlighted the positive technical chart setup in NDX when it traded at $8,370. Our immediate target mentioned called for quick move to $8,500+. Currently, the NDX is trading at $8,570 and futures at $8,600 level. Traders following our NDX signal are now up 200 points+ ! Considering the quick move, it would be wise to lock in gains on half position and protect remaining profit with a stop loss. The Nasdaq 100 (NDX) remains strong, but traders looking for new entry should wait for a price correction.
November 26th :The S&P 500 Index (SPX) closed up yesterday +0.75%, the Dow Jones Industrials Index ($DOWI) closed up +0.68%, and the Nasdaq 100 Index (NDX) closed up +1.21%.
Yesterday, we saw U.S. stock indexes pushed higher with the S&P 500 and Nasdaq 100 setting a new record highs, pushed by improved chances for a U.S./China trade deal, following better Trade prospects after China on Sunday said it will raise the penalties on violations of intellectual property rights in an attempt to appease U.S. demands in trade negotiations.
Looking at the NDX technical price chart, we can see that recent price trend showing number of positive technical elements in the chart. First, in August- September, we have seen the 200 day moving average starting to shape up (see chart below) which creates stronger long term price momentum on the way up. Second, NDX chart has created series higher low support levels on the way up, which provides better support and better risk management for long traders. Lastly, following the break into all time highs, we can see that NDX still trading far from the upward channel resistance; this should provide long traders price objective north of the 8,500 level