NDX closes lower for the 4th day in a row
Nasdaq 100 Index (NDX) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, NDX ended the week 1.08% higher at 11852.17 after edging lower $46.40 (-0.39%) today. Trading $82.03 higher after the open, Nasdaq 100 was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, NDX lost -0.81% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NDX as at Oct 16, 2020):
Friday's trading range has been $209.99 (1.76%), that's slightly below the last trading month's daily average range of $212.71. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NDX.
Prices are trading close to the key technical support level at 11765.49 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 11765.49 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nasdaq 100. Out of 333 times, NDX closed higher 59.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 68.47% with an average market move of 1.16%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are DAX gaining 1.62% and FTSE closing 1.49% higher. On the flipside the worst performer has been NKY closing -0.41% lower. Read more