Range Bound, Up And Down Until...

The NASDAQ broke trend last week with the index crossing below the line connecting bottoms. Bulls ran the show since mid-March and rallied nearly 3500 points before cracking the charge uphill last week. Now, investors are in a tough spot. Does the trend break lead to more selling or is the weakness an opportunity to buy on the cheap compared to prices just 30 days ago? The answer lies in resistance at 14,500 on the upside and support at 13,300 on the downside. What happens between the upper and lower guardrails is just technical noise. We would not be surprised to see the NASDAQ bounce between resistance and support for the next few weeks, benefiting range bound traders. Until the upper or lower boundaries are broken, investors might consider taking short-term profits as the NASDAQ approaches 14,500 and initiating short-term trades when the index closes in on 13,300. Longer term, the NASDAQ would be positioned to continue moving higher with a close above upper resistance at 14,500. A close below 13,300 might mean a trip to the 200-day moving average of 12,096 and rising. Either way, the next move is likely to be consequential and one that could be profitable for investors that are on the right side of the trade. For now, investors might be wise to hold their positions until the NASDAQ breaks out or breaks down. Preparation is key, stop loss orders might make sense for short term traders. SECTOR VIEW In what could be a sign that weakness might continue, SPDR S&P 500 ETF Trust (SPY) considerably outperformed Invesco QQQ Trust (QQQ) last week. As long-time readers know, we view the NASDAQ as the Mary of the market, where it goes, the other indexes are sure to go. We’ll be on the lookout for QQQ to outperform SPY as a potential precursor to bulls taking charge again. Energy and Healthcare were clearly the biggest winners last week. Three oil and gas exchange-traded funds (ETFs) held spots 2, 3, and 4, behind the top gainer SPDR S&P Telecom ETF (XTL), up more than 4 percent. Positions 5 through 8 were occupied by healthcare ETFs. With the NASDAQ in 50/50 land, we’d be hesitant to add any new sector/industry funds at this point. Hopefully, we’ll have more clarity next week. STOCK VIEW We aren’t big fans of entering new positions when direction is in doubt. If the NASDAQ can establish hardened support in the week ahead, we’ll look to add new ideas with a better understanding of a clear, technical exit point. Rich Meyers The post Range Bound, Up And Down Until… appeared first on Edge on the Street. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [Unlock Profit Opportunities with a Soaring Penny Stock]( The stock market faced numerous challenges in the past year, but amidst the turmoil, a few remarkable success stories emerged. One such standout is a particular stock that experienced a significant surge in its value. [Go HERE to see the Potential Investing Opportunity]( By clicking this link you are subscribing to The Stock Market Monster Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( [Range Bound, Up And Down Until…]( The NASDAQ broke trend last week with the index crossing below the line connecting bottoms. Bulls ran the show since mid-March and rallied nearly 3500 points before cracking the charge uphill last week. Now, investors are in a tough spot. Does the trend break lead to more selling or is the weakness an opportunity to buy on the cheap compared to prices just 30 days ago? The answer lies in resistance at 14,500 on the upside and support at 13,300 on the downside. What happens between the upper and lower guardrails is just technical noise. We would not be surprised to see the NASDAQ bounce between resistance and support for the next few weeks, benefiting range bound traders. Until the upper or lower boundaries are broken, investors might consider taking short-term profits as the NASDAQ approaches 14,500 and initiating short-term trades when the index closes in on 13,300. Longer term, the NASDAQ would be positioned to continue moving higher with a close above upper resistance at 14,500. A close below 13,300 might mean a trip to the 200-day moving average of 12,096 and rising. Either way, the next move is likely to be consequential and one that could be profitable for investors that are on the right side of the trade. For now, investors might be wise to hold their positions until the NASDAQ breaks out or breaks down. Preparation is key, stop loss orders might make sense for short term traders. SECTOR VIEW In what could be a sign that weakness might continue, SPDR S&P 500 ETF Trust (SPY) considerably outperformed Invesco QQQ Trust (QQQ) last week. As long-time readers know, we view the NASDAQ as the Mary of the market, where it goes, the other indexes are sure to go. We’ll be on the lookout for QQQ to outperform SPY as a potential precursor to bulls taking charge again. Energy and Healthcare were clearly the biggest winners last week. Three oil and gas exchange-traded funds (ETFs) held spots 2, 3, and 4, behind the top gainer SPDR S&P Telecom ETF (XTL), up more than 4 percent. Positions 5 through 8 were occupied by healthcare ETFs. With the NASDAQ in 50/50 land, we’d be hesitant to add any new sector/industry funds at this point. Hopefully, we’ll have more clarity next week. STOCK VIEW We aren’t big fans of entering new positions when direction is in doubt. If the NASDAQ can establish hardened support in the week ahead, we’ll look to add new ideas with a better understanding of a clear, technical exit point. Rich Meyers The post Range Bound, Up And Down Until… appeared first on Edge on the Street. [Continue Reading...]( [Range Bound, Up And Down Until…]( And, in case you missed it: - [Black And White Insider Buys]( - [Chinese Oil Prices React to Global Supply Dynamics]( - [Asia stocks stall, China’s Rate Cut on Global Markets]( - [Impact of Global Events on Stock Market Trends]( - [European Stocks Remain Steady as Investors Evaluate Dynamics]( - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [Protect Your Wealth from Inflation - Your Survival Guide]( Inflation is a silent killer of your wealth. You may be losing more money than you realize, and it could only get worse. Don't wait until it's too late to take action. [Go HERE To Learn How to Protect Yourself from Infl]( By clicking the link you are subscribing to The Investors News Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( - CLICK THE IMAGE BELOW FOR MORE INFORMATION - [i]( Good Investing! T. D. Thompson Founder & CEO [ProfitableInvestingTips.com]() ProfitableInvestingTips.com is an informational website for men and women who want to discover investing and trading products and strategies to educate themselves about the risks and benefits of investing and investing-related products. DISCLAIMER: Use of this Publisher's email, website and content, is subject to the Privacy Policy and Terms of Use published on Publisher's Website. Content marked as "sponsored" may be third party advertisements and are not endorsed or warranted by our staff or company. The content in our emails is for informational or entertainment use, and is not a substitute for professional advice. Always check with a qualified professional regarding investing and trading guidance. Be sure to do your own careful research before taking action based on anything you find in this content. If you no longer wish to receive our emails, click the link below: [Unsubscribe]( Net Wealth Consultants 6614 La Mora Drive Houston, Texas 77083 United States (888) 983-9123