While the S&P 500 price action is my primary guide for gauging market sentiment, it does help to keep a close eye on the Nasdaq and Russell and to a lesser extent, the Dow Jones Industrial Average.
When I look at the Nasdaq, unlike the other indices, you have an index that is having an extremely difficult time breaking through the 200-day Moving average.
The last 8 trading sessions, nearly two weeks worth, has seen the Nasdaq struggle big time with the MA. However, it isn’t selling off hard, and when the market sold off last week, the Nasdaq hardly budged. But it isn’t progressing either and at some point, something has to give.
Here’s the Nasdaq chart analysis:
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