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NASDAQ re-test Break of Rising Wedge Pattern

The NASDAQ fell through its rising trend, rebounded at support of the 50-day moving average. It is now re-testing the break of the lower rising trend.

RSI is above 50 indicating an up trend. The MACD turned down through the 9-day moving average giving a sell sign. The Slow Stochastic fell through 80, giving a sell sign.

Once again the NASDAQ is leading the market, this time with a re-test of last week's break down. On the daily chart we have a sell signal with support just below at the 50-day moving average. As expected the re-test is underway. If the re-test holds, then we can expect a further move down. However, the 50-day moving average could offer support. 

The 60-minute chart shows the break of the lower rising trend and the 200-hour moving average as well. Now we are experiencing a re-test of the break. If the re-test holds then we will see a further move down, with the 1,950 as the next support level. On the other hand, if the re-test fails and the NASDAQ rises further the rally continues.

The RSI is above 50, a sign of an up trend. The MACD turned up through the 9-hour moving average and is reaching the negative divergence line on the MACD. The Slow Stochastic turned up through 20, giving a buy sign.

The hourly NASDAQ chart gave a buy sign. As expected the re-test is underway. Any further weakness is a good indication the move down will be more significant.

The NASDAQ Composite Bullish Percent Index (BPCOMPQ) shows how NASDAQ companies continued to climb to new highs until recently.

After reaching new three year highs the BPCOMPQ gave a sell signal by turning down through the 20-day moving average.

The MACD has turned down through the 9-week moving average, a sell sign. Moreover, it is showing negative divergence, a good indication of a move down in the BPCOMPQ. The RSI has fell back down through 70 a sign of weakness.

This indicator is telling us the NASDAQ is turning down. We still can see another rebound that would negate the sell sign. we are at a high point, so a move down will come soon. this is likely to be it

If we get a brief rebound, it will off an opportunity to add further down side protection using covered calls, and short ETFs, as well as buying protective puts.