|
Nasdaq Price action Could be Pointing to Shift in Sentiment
NASDAQ: Nothing too exciting to write about on the currency side this afternoon so we will defer to equity prices for a potential indication of future direction. Since bottoming in March, the Nasdaq has managed to put in 9 consecutive weekly positive closes and higher highs, before finally stalling out in the current week. A combination of the inability to set a fresh weekly higher high, a negative close and break of a sequence of consecutive weekly higher lows could now be warning of a potential reversal which would also be suggestive of elevated risk aversion within the broader global macro markets. From a currency standpoint this would likely translate into a resurgence is USD demand as traders flock back into the safety trade. We would however need to see a negative weekly close and break below the 1664 (weekly low) to confirm bearish outlook.
All my best,
Joel
|
