Watching the 50 hour MA
The Nasdaq is giving up some of the gains from yesterday in trading today but is bouncing off the lows in recent trading.
Looking at the hourly chart above, the index yesterday at the low stalled just above the 50 hour MA (white line). Today, that MA comes in at 7711.47 (and rising). Traders willl be eyeing that level on dip. Stay above keeps shorts anxious. Move below and the run higher may see some profit taking.
Since the low on March 8th, the run to the high yesterday took the pair up 7.02%. That is not a bad run for the lows.
The run higher has been reminiscent of the go-go times of 2017 and parts of 2018. That feeling is one of an underinvested market. Jeffrey Gundlach of Doubleline is calling the market a bear market.
On the other side is "Will the slowdown that the Fed and central banks are harping on, hurt earnings?".
It's Friday and that means there may be some extra volatility today. But so far, the buyers are not giving up entirely.
