The Nasdaq 100 (NDX) briefly traded above the 50d moving average on Tuesday, fading in the evening and closing at this key level. Weakness persists this morning. (/NQ) Nasdaq Futures are trading 12,991.00 in the premarket session. For the NDX to fail, the top 10 stocks would need to breakdown as well.
Nasdaq 100 – Top 10 Weighted Stocks
The Nasdaq will either rally or fail on the strength or weakness of these top weighted stocks from the index. Together they represent more than 50% of the weighting. Currently, FB, AMZN, AAPL, GOOGL, NVDA, and NFLX are in the red by more than 1% to start the trading day.
NDX Levels: 13000, 12900, 12800, 12500
NDX Combo: 12785, 12916
We’re considering trades in the above group of based on these premises, however they should be considered as short-term in nature, due to.recent market weakness in growth stocks. Should the markets breakdown and NDX/QQQ weaken further, we’ll consider hedges in SQQQ and QQQ puts.
Futures are trying to rebound this morning going into FOMC.