Nasdaq 100 to plunge towards the July low at 14455 on a break below 14865 – Credit Suisse

Nasdaq 100 has completed a bearish “outside day”. The index is also stalling at the upper end of what is seen as a “typical” extreme (15% above the 200-day average) as well as holding a glaring bearish RSI momentum divergence. This leaves a bearish “rising wedge” reversal threatening and analysts at Credit Suisse continue to see the risk lower for a test of the July low and 63-day average at 14455/305.

See – S&P 500 Index to continue rallying higher until 4562 – Credit Suisse

Nasdaq continues to lose momentum, the risk is now seen lower

“Nasdaq 100 strength has been capped at its 15185 high and the sharp fall yesterday has seen a bearish ‘outside day’ established to leave a small bearish ‘rising wedge’ reversal pattern threatening.”

“With US bond yields having established bases and expected to rise further and with the Nasdaq 100 itself having been to the upper end of what we continue to see as its ‘typical’ extreme (15% above the 200-day average) and also holding a glaring bearish RSI momentum divergence we see the immediate risk lower.”

A close below the 13-day exponential average at 15030/10 should add weight to our view with support then seen next at the 14865 recent low. Beneath this latter area should further increase bearish pressure for a test of the July low and 63-day average at 14455/305.”

“Above 15185 is needed to reassert an upward bias again with trend resistance from February at 15280 and with the upper end of the extreme at 15360.”