We're looking at a “NAS” today and, no, it's not the rap icon one who returned to the Grammy's this year.
I'm talking about the U.S. NASDAQ composite index, yo!
Check out what's happening on the daily chart:
NASDAQ: Daily
You probably need to squish your daily charts a bit but it's easy to see that the U.S. The NASDAQ composite index has been on a steady(ish) uptrend since recovering from its 2020 lows.
Heck, the index has been trading above the 100 SMA since late April 2020!
2022 hasn't been a good year for the index, though, as it had pulled back quite a bit since hitting the 16,000 levels.
News of Elon Musk buying enough $TWTR stocks to become its largest single shareholder helped boost a lot of U.S. equities that also benefited from a risk-taking mood yesterday.
But can they keep the bullish momentum this week?
The NASDAQ is not only trading below the 100 and 200 SMAs, but Stochastic is also signaling an “overbought” signal just as the index reached its February and March highs.
Not a good look for the index especially since the 100 SMA has also crossed below the 200 SMA. FYI, the last crossover was in May 2019.
I'll be on the lookout for bearish news that could solidify 14,500 and the SMAs as a resistance zone this week.
For one thing, the Fed's meeting minutes could reveal a tightening schedule that could spook risk-takers. Broader and longer lockdowns due to bigger-than-expected COVID outbreaks in China also won't help risk-taking in the markets. Last but not least, talks of sanctions on Russia's oil and gas supplies could spark more concerns about global economic growth.
