NDX dominated by bulls lifting the market higher throughout the day
Nasdaq 100 Index (NDX) Technical Analysis Report for Aug 13, 2019 | by Techniquant Editorial Team
NDX finished Tuesday at 7728.15 surging $166.47 (2.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 7623.44, the index confirmed its breakout through the previous session high after trading up to $154.90 above it intraday.
Daily Candlestick Chart (NDX as at Aug 13, 2019):
Tuesday's trading range has been $225.01 (2.98%), that's far above the last trading month's daily average range of $114.40. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NDX.
Notwithstanding a weak opening Nasdaq managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on August 7th, NDX gained 2.29% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 100-day moving average at 7619.54. Unable to break through the key technical resistance level at 7742.60 (R1), the stock index closed below it after spiking up to 7778.34 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 7528.95 in the previous session, Nasdaq 100 found buyers again around the same price level today at 7553.33.
Though NDX is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Nasdaq 100. Out of 27 times, NDX closed higher 55.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 70.37% with an average market move of 1.80%.
With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are SPX gaining 1.51% and DJIA closing 1.48% higher. On the flipside the worst performers have been HSI closing -2.1% lower and NKY losing -1.11%. Read more