Spends most of the week between key MAs
The Nasdaq index has been trading above and below unchanged on the day. The current price as I type is at 8507.11, up 13 points or 0.12%. The high reached 8539.27. The low extended to 8464.42.
Technically, this week the pair reached a high at 8684.91. That was near the 100 day MA (at 8679 at the time). The 100 day MA is at 8670.807.
The low on Tuesday reached 8215.69. That move did move back below the 50% midpoint at 8234.896. The price also moved below the 50 day MA on that day, but the selling could not be sustained.
The rise on Wednesday and the high from yesterday took the price back toward the 100 day MA, but fell short once again.
What next?
The index trades between the 200 day MA below at 8412.95 and the 100 day MA above at 8613.31 (about 200 points). The price is right around the midpoint at 8507 currently.
The "market" is saying "pick your poison".
Unfortunately, despite the rebound higher that has the index above the 50% of the coronavirus run lower, there remains a lot of uncertainty still from the economic impact and the strength of the rebound. This week, we saw another 4.4M plus people join the ranks of the unemployed (total out of work is now 26M plus). If there is a rebound, a restarting of the economy (which has it's risks), at what pace will the those jobs be added back? It is safe to say, that the job adds won't be as great as those lost. However, there may be pent up demand in economic activity.
The worse case scenario is if the there is a restart and that leads to a 2nd wave of infection.
As a result, hanging around the MAs seems to make some sense as the market awaits the next shove from more certainty. For now, 200 points is that low high range (from the MAs) and we sit in the middle of the key technical levels.
