Index rises to test 38.2% and 50 hour MA
The NASDAQ index moved down some 12.54% from the high on February 16th to the low reached on Friday before moving back higher into the weekend.
Yesterday was a different story, as sellers returned and sent the index down some 310 points in one way selling.
Today, with interest rates declining, the dip buyers returned overnight and the early activity is to the upside once again. The index is currently up over 400 points, or less 3.18% and back above the 13000 level. The I price reached 13066.02.
The run to the upside has moved closer to the 38.2% retracement of the move down from the February 16 high. That level comes in at 13076.27. Above that sits the 50 hour moving average at 13095.15 currently.
If the buyers are to win back more technical control from the sellers, getting above those levels are imperative. They are the minimum targets if the buyers are to take back more control. Failure to do that, and the moved scene off the low is it simply a plain-vanilla correction of a trend move lower.
So watch 13076.27 and the if 50 hour MA for technical close. For now, sellers seem content to lean against the levels and in doing so, is keeping sellers in play and also in control.
