Asset Watch
Tuesday, August 22, 2023
Similarly, after a breakdown below the 20-week MA occurred in January 2022, the metric became resistance in March and December 2022. A rally above the 20-week MA occurred in July/August 2022, but it ultimately failed, and the index sunk to new lows.
More importantly, we’re approaching a make-or-break point in 2023. If the bulls mount a defense, the downside could be roughly 300 points until the 20-week MA hits. In addition, the horizontal red line at the bottom shows how the index’s weekly RSI bottomed near 55 during the 2020-2021 pullbacks, and that level is also approaching.
So, is the NASDAQ 100’s dip a correction within a bull market or something more sinister?