Zooming Out/Very Round 10000 Number In Focus:

How quickly things can change. Last month a bullish MONTHLY candle for the Nasdaq, off the very round 10000 figure, CLOSING above the rising 50-day SMA gave a glimmer of hope for technology. One of the most concerning things was how the tech-heavy benchmark was not firmly bouncing off the 50-day SMA. One of the positive theses was how it did that in March 2020 and then the bullish engulfing candle in April had the index not looking back (it did so again in December 2018 and then a bullish piercing line candle in January 2019 to ignite some moderate buying). Currently, the Nasdaq has kept in close proximity to the 50- day since June, and the longer it stays there in my opinion the more likely it is to break to the downside. On its daily chart, we are now back to retesting the 10/13 bullish engulfing candle, for the second straight month. The gap fill from the 11/9 session is trying hold and that big bearish filled-in black candlestick from 12/13 all loom large. Four-figure Nasdaq on deck? Thursday did end with a bullish hammer to complicate things. Will be a nice tug of war between bulls and bears into year-end.

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