NASDAQ Battles the 200 Day SMA Level Update

Apr 27, 2016: 12:14 PM CST

The tech-heavy NASDAQ Index is weaker than the S&P 500 at the moment due to down-gaps in leaders like Microsoft and Google.

At the moment, the index challenges the key 200 day SMA level for a “make or break” event right now.

What’s the level and what are the possible future swing-plays in the NASDAQ?  Let’s see them:

A strong rally off the February 2016 low took price from 4,200 to the underside of the 5,000 index level.

A logical pullback (retracement) on negative divergences took the index into the current pivot point target.

We’re carefully watching what happens next at the price overlap with the 200 day SMA at the 4,850 level.

A possible support-bounce here opens a green-zone upside play back toward the 5,000 level.

However, a breakdown opens a larger downside liquidation move on a steeper retracement “down away from” the 4,850 pivot toward lower targets like 4,600.

No matter what other strategies or indicators you’re using, focus on 4,850 as your line in the sand for bull/bear plays.

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Corey Rosenbloom, CMT

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