stock market

Nasdaq 100 Struggling to Hold Current Support

The big tech NASDAQ 100 index ($^NDX), which is tracked by the $(NYSEARCA:QQQ) ET, is struggling to hold current support at 11615.

 

By Jeffrey Hirsch

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We had some folk ask us to post our current support and resistance levels for the NDX. In addition to several support levels there are a couple of Candlestick Doji patterns that our good friend, the venerable John Person (@PersonsPlanet), schooled us on when we did the Commodity Trader’s Almanac together. It is featured in his most excellent book, Candlestick and Pivot Point Trading Triggers.

It looks like we logged a Dragonfly Doji at the high on September 2, which has bearish implications. Then today there was a likely failed Morning Star Doji, which is a bottom reversal pattern, when NDX closed below yesterday’s close. NDX needs to hold support here around 11615, which lines up with the 9/4 and 10/6 opens and the top of the September cup pattern.

If 11615 fails to hold, the next level of support seems to be around 11245, which aligns with the top of the mid-August consolidation and the bottom of the mid-September consolidation as well as the 9/28 Doji Hammer gap and the early October consolidation. Further support is shown in the chart down at 10750, 10470 and the old February 2020 high at 9775.

Current resistance sits around 12130 near the top of the September mini-Waterfall decline and the October highs and then above that at the September Doji high of 12420. A move higher over the next day or so with a green candlestick would be constructive. A break below 11615 would bring 11245 into play.

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