Trend Lines, Support, Resistance for 10/9
Trend lines drawn from 9/3 (26d), 9/24 bottom (12d), 10/5 (5d) and today 10/9 (1 day).
The Nasdaq topped off a +5% week with another gain on hopes of an economic stimulus. Gains were 1.39% for the index, but on lower volume (note that my indicator volume is based on QQQ). The day was almost upward the entire time with a 88% green body candle, small bottom wick and 99% closing range. The October resistance area becomes a possible support area.
For Monday, continuing the bullish momentum from the 1d and 5d trends would roughly follow the trend from the 9/24 bottom as well. That would be a +0.30% gain.
The trend from 9/3 continues to rotate to an upward direction. If news were to cause a pullback, there are two support areas that it could pause on a downward direction. Further down, the index would likely find support at the 50d MA and meet up with that longer trend line for a -3.17% loss.
Stimulus is still not certain, although discussions are back on the table. The discussions could cause additional volatility. I'm keeping the June Support line in view, but its now almost 15% below the Friday close and there are 4 key support levels that it'd have to break thru. If we have a downside reversal that takes us below 11,300, then I'll add that possibility back to the chart.
The Nasdaq topped off a +5% week with another gain on hopes of an economic stimulus. Gains were 1.39% for the index, but on lower volume (note that my indicator volume is based on QQQ). The day was almost upward the entire time with a 88% green body candle, small bottom wick and 99% closing range. The October resistance area becomes a possible support area.
For Monday, continuing the bullish momentum from the 1d and 5d trends would roughly follow the trend from the 9/24 bottom as well. That would be a +0.30% gain.
The trend from 9/3 continues to rotate to an upward direction. If news were to cause a pullback, there are two support areas that it could pause on a downward direction. Further down, the index would likely find support at the 50d MA and meet up with that longer trend line for a -3.17% loss.
Stimulus is still not certain, although discussions are back on the table. The discussions could cause additional volatility. I'm keeping the June Support line in view, but its now almost 15% below the Friday close and there are 4 key support levels that it'd have to break thru. If we have a downside reversal that takes us below 11,300, then I'll add that possibility back to the chart.
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