Nasdaq 100 Reverses Higher, But Lasting Rally Unlikely

nasdaq 100 index reversal higher rally chart image september 29

Nasdaq 100 Index (NDX) Chart

The Nasdaq 100 Index (NDX) and related ETF (QQQ) can make a bit more upward progress after Monday’s big rally.

The NDX closed right near the highs of Monday’s range, something that likely will lead to a bit more near-term strength this week before this bounce runs its course.

As detailed in recent days, the NASDAQ has stabilized a bit and Tech has acted better than the broader market, thanks to Technology Hardware stocks. And Monday confirmed this. However, there is still much to prove.

The Bottom Line: I don’t expect a move back to highs, but rather a move to the 50% or 61.8% Fibonacci retracement of the September decline. That area should provide an attractive risk/reward to sell into.

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Author has positions 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.

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