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.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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