Lately there has been a battle between the Nasdaq and the Transports. The Nasdaq wants to lead us higher while the Transports want to lead us lower. The difference between the two markets heading into this week is that the Nasdaq is close to testing a key technical area while the Transports are not.
Right now the Nasdaq is within striking distance of their 150 day smooth moving average (2176.01). If they can get back above it and sustain trade above it; I think that they will pull the rest of the market higher (including the weak Transports).
If they fail to get back above it then I think that the entire stock market will sell off. I posted some charts to show you what has happened the last two times the Nasdaq failed to sustain trade above their 150 day smooth m.a., it was ugly.
Have a great week of trading.
www.eminiexecutors.com 239-594-6876 info@eminiexecutors.com
Moving Averages; Black (10 day), Blue (20 day), Green (50 day), Pink (200 day) Purple (150 day smooth avg.). Horizontal Lines; Blue (High of the year), Red (Low of the year), Green (Unchanged for the year.
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| E-mini Nasdaq Futures |
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| Dow Transports |
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| S&P Cash |
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| Dow Jones Industirals |
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| VIX |
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