To The Moon

Valiant defenders of Nasdaq

It was another valiant show of defense by the bulls of $NASDAQ(.IXIC)$on Tuesday as they started off on the back foot with early pressure from the bears. 

The bears made an early assault and managedto open below the three daily EMAs (5,10 and 20) as they try to make the bulls submit and capitulate below the EMAs. The bulls however had other ideas and managed to push the bears back past the three daily EMAs mentioned and managed to hold their position above the mentioned EMAs at closing even eking out some gains in the process. All in all a commendable effort.

Moving forward, all is not clear though for the bulls as they are in more of a defensive position at the moment. More likely than not, participants are waiting for Friday's CPE gauge to have a rough idea of how inflation is panning out. A reading below the previous month will galvanise the bulls as it might indicate inflation has peaked and a rally might follow up. A number above the prior month might give the bulls the cold shoulder and the bears might come out in droves to pin the bulls back.

So it might be wise to sit tight now and see which way the market swings but keeping in mind that there might be sudden sharp swings ineither way of the market.

Stay safe 😊