Nasdaq-100 has been the strongest among major US indices lately, closing at new record highs day after day, without any sign of weakness or price consolidation. A correction down to the 10-day MA @ 4.250 or to the 20-day MA @ 4.210 may take place as the market conditions are very “overbought” in all time frames. In case of a bigger correction, 4.118, which is the September 19 intraday high can provide nice support. If this level is broken, we may see the start of a bigger move down, maybe down to 4.000. Even though the index is overextended, it is not advisable to trade it from the short side at this point.
NASDAQ-100, daily chart:
Chart courtesy of Investing.com. http://investing.com
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