The NASDAQ index moved to a high yesterday of 12081.73. That was short of the high price from July 22 at 12093.02. Both were also short of the 38.2% retracement of the move down from the March 29 high at 12124.37.
Today the high price reached 12080.16 just below the high from yesterday.
Needless to say, the sellers have been able to keep the lid on the NASDAQ index below the 38.2% retracement which puts into question the buyers conviction. With the highs below the retracement, the correction is a plain-vanilla variety in what remains a more bearish market. Getting back above the 38.2% retracement and staying above is required to give the buyers more confidence and more control. A break above would have traders looking toward the swing hi from June 2 which cut across at 12320.12.
The good news for buyers - despite the headwinds from the retracement above - is the low price prices from July 18 and July 26 did find support buyers near the rising 100 hour moving average (blue line in the chart above). Ahead of that MA level, there is higher support today at 11754, and then 11677 and 11635 (swing levels going back to June 9, June 27, and July 8).
For now though, the sellers have the better hand and control.
