The Nasdaq 100 has traded in a steady up-trend for several weeks, leading the broader stock market higher.
But perhaps this red-hot index has gotten a bit overbought.
Today’s chart shows why the Nasdaq 100 Index (and futures, as shown) may be in line for a near-term pullback.
As you can see, the Nasdaq 100 futures have reached the Money Flow Unit 4 (MFU-4) price target. This is a fairly stretched rally price target that often sees a pullback or correction.
Time for a little caution.
Nasdaq 100 Future Trading Chart
Twitter: @GuyCerundolo
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
