I often say that the Nasdaqs lead the overall market so I watch them closely for hints of short term market direction. Above is a chart that shows the S&P in red and green candlesticks and an orange line which represents the Nasdaq 100. The chart shows today's market action. You can see that the orange line (Nasdaq 100), was following right in line with the S&P all day until late in the afternoon. Then you see the orange line drop down and separate from the S&P. I saw that occur today and immediately closed half of my long positions. The Nasdaq 100 broke to a new low on the week and so I was sure the Dow and S&P would follow. They did. Once the Nasdaq bottomed and curved up, I put my long positions back on at a better price. I just wanted to post this chart to show you how usefull watching the Nasdaqs can be to predict very short term market direction.
No comments:
Post a Comment