The NASDAQ is currently in a Bearish zone with strong selling pressure

pretiming
09-10

$NASDAQ(.IXIC)$ $NASDAQ 100(NDX)$ $Invesco QQQ(QQQ)$ $E-mini Nasdaq 100 - main 2409(NQmain)$

Current Market Status:

Closing Price: 16,694.1 (-2.53%)

Trend: Bearish

Long-Term Strategy:

The NASDAQ is currently in a Bearish zone with strong selling pressure and a high risk of further declines. The recommended approach is to "Sell and Observe" until signs of a trend reversal or a shift to a Bullish zone appear. Avoid buying until the market shows a clear upward movement.

Short-Term Strategy:

In the short term, the market is expected to continue its downtrend with potential temporary upward movements. A "Sell (Bearish)" position is advised, with optimal selling around September 12-13 and potential buying around September 18-19, when the price is expected to be lower.

Long-term strategy

The current trend zone is Bearish, and Investment position suitable for the trend zone is Sell and Observe.

The trend within a Bearish zone is divided into a 'Downtrend' in the downward direction and a 'Rebound Trend' in the upward direction. In the Downtrend, there is a strong downward flow with occasional upward movements, while in the Rebound Trend, there is a fluctuating flow involving limited or temporary upward movements and downward fluctuations. Investing in this zone is associated with low expected returns and a higher risk of decline.

In a Bearish zone, there is potential for strong selling pressure to persist, resulting in a pronounced downward trend and a relatively weak upward rebound trend. When considering a medium to long-term investment strategy, if the trend moves in the Bearish zone, one can anticipate a downward flow of the bearish trend, allowing for the possibility of avoiding high downside risks or potentially gaining profits by investing in inverse stocks.

This is a method of waiting, observing the overall market conditions after selling in anticipation of a general price decline, and then making a buy decision again. And when the trend enters a Bullish zone, it becomes the Buying point.

As there are no anticipated changes in the trend zone that warrant considering a shift in investment strategy at this point, it is advisable to maintain the current investment position.

The 'Sell and Observe' position has been maintained for 6 days since the entry into the Bearish zone. During this period, the cumulative rate of loss in the Bearish has been -4.9% as of the current date.

Short-term strategy

Indicating that We are currently in a bearish zone. Therefore, it is recommended to implement a strategy to reduce risk and take a suitable investing position.

In a bearish zone, where selling intensity is potentially strong, considering the possibility of a significant downturn at appropriate selling points is crucial. Hence, in the short term, an active and aggressive selling response is effective. During buying moments, it is advisable to adopt a wait-and-see approach or a conservative response with low exposure for purchases. Responding promptly to sell during upward movements can be utilized as an opportunity for risk hedging.

Currently, it's in the midst of a downtrend characterized by a strong downward price momentum, with temporary rises and strong falls. and The Buy-Sell intensity has changed from a weak selling flow to a suddenly strengthening selling flow.

A downtrend is characterized by an overall strong downward flow driven by strong selling pressure.

It is expected that the overall trend movement over the next 10 days will follow a descending rectangle pattern, with a ratio of 5 : 5 for the downward to upward direction, with the proportion of the upward and downward trend being equal. However, in terms of the expected intensity of the upward and downward movements, the upward intensity is moderate, while the downward intensity is higher.

A suitable investing position is 'Sell(Bearish)' for now. The appropriate selling timing is predicted to be in 5 days.

https://www.pretiming.com/2024/09/nasdaq-market-summary-september-6-2024.html

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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