The overall trend in the major stock market indices is downward.
Though we’ve had small rallies, our last jump in price was minor and right into resistance.
Specifically, looking at the Nasdaq 100 ETF (QQQ) we have reached a key support level in which many traders are watching for a price break.
However, when it comes to Nasdaq’s breaking point, we need to keep the big picture in mind since we’ve seen the market turn around quickly.
The above chart shows the 4 major stock indices including the Russell 2000 (IWM), Dow Jones Industrials (DIA), S&P 500 (SPY), and the Nasdaq 100 (QQQ). Each has a black line drawn at its key price support level.
Though QQQ closed right on its $318 support on Monday, notice that all the other indices still have space between their support lows.
This makes a breakdown in the QQQ tough to read as the other indices are currently holding above their key support levels.
Something else we should note is that the Fed is expected to raise rates by 25 basis points in a couple of days.
While this has been known, the market still could throw a fit, especially if any unknown changes surface in the FOMC announcement on Wednesday.
Therefore, with a tough trading week ahead, if the QQQ is going to break down further, watch for other indices to follow and break their key support levels as confirmation.
Stock Market ETFs Trading Analysis and Summary:
S&P 500 (SPY) 410-415 is price support.
Russell 2000 (IWM) 188-193 is price support.
Dow Jones Industrials (DIA) 322-326 is price support.
Nasdaq (QQQ) 318 is price support.
KRE (Regional Banks) Needs to hold over 69 the 200-day moving average.
SMH (Semiconductors) Broke 239 price support level.
IYT (Transportation) 243-245 is price support area, 264 is resistance.
IBB (Biotechnology) 118 is price support.
XRT (Retail) 78 is price resistance, 72 is support to hold.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
