Our update on the Nasdaq
The Index holding the largest amount of fast money shows that we are still above the famous 20 day moving average. It has now been tested numerous times, as well as, the upward sloping trendline that mirrors the 20 day.
We also have a horizontal congestion zone around 255. A break below 255 with will break the 2 trendlines and the 20 day moving average. The last support will be last weeks lows around 251, below here we will see selling (we also have the MACD trying to cross below the 0 line).
But don’t jump the gun, tonight we have Apple, Amazon, Facebook and Google reporting. Basically the index reports tonight.
For those looking to pre-empt this, you can use a 21 August bearish put spread with 255-225 the levels of the long and short. This is a roughly 7 times risk-reward. We are using QQQ ETF as the proxy for the NASDAQ.
