Has the rebound started or was Mondayâs rally a head fake before the next leg lower? The NASDAQ started the week gaining more than 1.5 percent following a decline where the index lost close to 1000 points in August. The turn north isnât surprising considering the NASDAQ was closing in on a Relative Strength Index (RSI) oversold reading of 30. Itâs not uncommon for buyers to show up when an index/stock/ETF⦠prints a score of 30 or below and sellers to take charge when the technical measuring stick hits 70 or more. There are a few yellow flags that suggest the current upturn might not have durable legs. First, Mondayâs volume was light, the second lowest number of shares traded in 2023. The old saying is volume precedes price, not the other way around. Secondly, the NASDAQ has resistance where the 50-day moving average sits. Thatâs two-ply technical trouble, which could make it hard for bulls to push the index much higher than 13,800ish. Longer term, the NASDAQ could be setting up the much feared and hyped Head and Shoulders pattern. As youâll see on the chart below, a potential left shoulder emerged when the NASDAQ peaked at 13,900ish, sold off, and then rallied to roughly 14,500. The mid-July high could turn into the head, but only if the index turns south before topping 14,500 and closes below the ânecklineâ at roughly 13,250. If a head and shoulders emerges and breaks, then the NASDAQ might take a trip to its 200-day mark, which stands at 12,159.77 and rising. Now, thatâs the bad side of things, off to the positive case⦠Bulls will be looking for the NASDAQ to rally, experience profit taking, pivot higher, and then rally past the point of profit taking. For example, the current move heads to the 50-day mark of 13,806, sells off to 13,500, which is higher than last weekâs closing low of 13,335.87, and then closes above 13,850ish. That is the higher high followed by a higher high, stepping up pattern that usually marks a pivot higher. For now, investors might consider holding their position until the current cycle runs its course. We should have a good sense of which scenario might play out after Labor Day. SECTOR WATCH SPDR S&P 500 ETF Trust (SPY) outperformed Invesco QQQ Trust (QQQ) in what was a bad week for stockholders. From our point of view, itâs most bullish for investors when the NASDAQ leads the way. Stocks could experience weakness or flatten out if SPY continues to lead the way. Only ETFMG Alternative Harvest ETF (MJ) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP) managed to post tiny gains in the last week, up 0.33 percent and 0.08 percent respectively. Much like our Market Watch opinion, index investors might sit on their current holding until we get bullish or bearish confirmation. STOCK WATCH There is no way we can hop on something new under current conditions. Hopefully we get the step up scenario, which could lead to some nice upside potential. Rich Meyers The post Short Term Rally Before A Long Term Problem? appeared first on Edge on the Street. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored ["Mastering Market Volatility:
The Ultimate Bears & Bulls Battle Plan" Click here to get your FREE Battle Plan!]( [Short Term Rally Before A Long Term Problem?]( Has the rebound started or was Mondayâs rally a head fake before the next leg lower? The NASDAQ started the week gaining more than 1.5 percent following a decline where the index lost close to 1000 points in August. The turn north isnât surprising considering the NASDAQ was closing in on a Relative Strength Index (RSI) oversold reading of 30. Itâs not uncommon for buyers to show up when an index/stock/ETF⦠prints a score of 30 or below and sellers to take charge when the technical measuring stick hits 70 or more. There are a few yellow flags that suggest the current upturn might not have durable legs. First, Mondayâs volume was light, the second lowest number of shares traded in 2023. The old saying is volume precedes price, not the other way around. Secondly, the NASDAQ has resistance where the 50-day moving average sits. Thatâs two-ply technical trouble, which could make it hard for bulls to push the index much higher than 13,800ish. Longer term, the NASDAQ could be setting up the much feared and hyped Head and Shoulders pattern. As youâll see on the chart below, a potential left shoulder emerged when the NASDAQ peaked at 13,900ish, sold off, and then rallied to roughly 14,500. The mid-July high could turn into the head, but only if the index turns south before topping 14,500 and closes below the ânecklineâ at roughly 13,250. If a head and shoulders emerges and breaks, then the NASDAQ might take a trip to its 200-day mark, which stands at 12,159.77 and rising. Now, thatâs the bad side of things, off to the positive case⦠Bulls will be looking for the NASDAQ to rally, experience profit taking, pivot higher, and then rally past the point of profit taking. For example, the current move heads to the 50-day mark of 13,806, sells off to 13,500, which is higher than last weekâs closing low of 13,335.87, and then closes above 13,850ish. That is the higher high followed by a higher high, stepping up pattern that usually marks a pivot higher. For now, investors might consider holding their position until the current cycle runs its course. We should have a good sense of which scenario might play out after Labor Day. SECTOR WATCH SPDR S&P 500 ETF Trust (SPY) outperformed Invesco QQQ Trust (QQQ) in what was a bad week for stockholders. From our point of view, itâs most bullish for investors when the NASDAQ leads the way. Stocks could experience weakness or flatten out if SPY continues to lead the way. Only ETFMG Alternative Harvest ETF (MJ) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP) managed to post tiny gains in the last week, up 0.33 percent and 0.08 percent respectively. Much like our Market Watch opinion, index investors might sit on their current holding until we get bullish or bearish confirmation. STOCK WATCH There is no way we can hop on something new under current conditions. Hopefully we get the step up scenario, which could lead to some nice upside potential. Rich Meyers The post Short Term Rally Before A Long Term Problem? appeared first on Edge on the Street. [Continue Reading...]( [Short Term Rally Before A Long Term Problem?]( And, in case you missed it: - [STOCK TIPS FOR AUG 23 2023](
- [Valiant Organics : Lalaji Ki Dukaan](
- [Linkfest: 23 August, 2023](
- [Aug Market Updates You Donât Want To Miss](
- [Spotlight Enphase Energy: Enhancing the Solar Wave]( - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored
[Discover the #1 Recession Stock of 2023](
Are you ready to seize the most promising investment opportunity of 2023? In the face of economic uncertainty, identifying stable and resilient companies is paramount to securing your financial future. Our expert team of analysts has tirelessly researched and assessed various stocks to bring you the one stock that stands above the rest.
[Go HERE to Learn More](
By clicking this link you are subscribing to The Wealthiest Investor 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