Today 03/10/21 the Nasdaq – 100 (NDX) opened above the upper of two Fibonacci resistance levels. Normally this break out at the open of the trading session would have triggered a bullish move for the remainder of the trading day.
The NDX 30-minute chart courtesy of Trading View illustrates what happened.
The high of the day occurred 20-minutes into the session, then trended down for the remainder of the session. This surprising downside reversal underscores the bearishness of the NDX.
The Dow Jones Industrial Average (DJI) made another new all-time high. My prior blog noted this index had a five-wave impulse pattern up from the 03/04/21 bottom. The DJI’s fifth wave of this pattern could be extending, if so, the pattern could be complete on 03/11/21. An update on the DJI will be coming soon.
Traders are holding 25% short non-leveraged SPX related funds as of the 01/07/21 open. Continue holding short.