Posted: 21 Oct 2020 03:41 PM PDT
The big tech NASDAQ 100 index ($^NDX), which is tracked by
the $QQQ ET, is struggling to hold current support at 11615. We had some folk ask
us to post our current support and resistance levels for the NDX. In addition to
several support levels there are a couple of Candlestick Doji patterns that our
good friend, the venerable John Person (@PersonsPlanet), schooled us on when we
did the Commodity Trader’s Almanac
together. It is featured in his most excellent book, Candlestick and Pivot Point Trading Triggers.
It looks like we logged a Dragonfly Doji at the high on September
2, which has bearish implications. Then today there was a likely failed Morning
Star Doji, which is a bottom reversal pattern, when NDX closed below yesterday’s
close. NDX needs to hold support here around 11615, which lines up with the 9/4
and 10/6 opens and the top of the September cup pattern.
If 11615 fails to hold, the next level of support seems to be around 11245, which aligns with the top of the mid-August consolidation and the
bottom of the mid-September consolidation as well as the 9/28 Doji Hammer gap
and the early October consolidation. Further support is shown in the chart down
at 10750, 10470 and the old February 2020 high at 9775.
Current resistance sits around 12130 near the top of the September
mini-Waterfall decline and the October highs and then above that at the September
Doji high of 12420. A move higher over the next day or so with a green candlestick would be constructive.
A break below 11615 would bring 11245 into play.