NASDAQ index looking to snap its 7 day decline

Technical Analysis

NASDAQ index is moving higher for the 1st time in 7 days

The NASDAQ index is on pace to snap its 7 day decline. The stock is currently up 182 points or 1.58% at 11727.

The 7 day decline saw the price moved down from the high to the low yesterday of -9.36%. Since peaking on August 16, the price decline from the high to the low was -12.97%.

Looking at the daily chart, the next major target comes against the 50% midpoint of the range since the June low. That comes in at 11870.00. Above that and the falling 100 day moving average at 11994.41 would be targeted. The price gapped below the 100 day moving average on August 29, and traders leaned against the level and push the price away from it. I expect sellers to lean against the 100 day moving average if it is re-tested with stops on a break above.

Helping the upside is a lower US dollar. Also, rates are lower as well with the 10 year down 9.1 basis points at 3.26%. Crude oil is also trading at its lowest level since January.

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