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NASDAQ may be close to flashing a buy signal
Closelook at US Stock Markets - Post 05
Thomas Look
August 22, 2023
NASDAQ may be flashing a buy signal soon
Closelook at US Stock Markets - Post 05
Today (21 August), we have seen the first positive technical divergences. The NASDAQ may be close to flashing a buy signal.
What happened
The 10-year notes and the 20-year bonds recorded new highs today. The 2- year notes were not able to able to climb above the October 2022 highs (3.00 p.m. New York time). And more important - the NASDAQ is up by 1.46 %, while the NASDAQ 100 has climbed 1.57 % one hour before the closing bell.
So what?
The fact that the NASDAQ did not crater today despite long-term rates rising substantially may indicate that Wall Street thinks the top of the bond market may be near. This would be bullish for risk-on stocks.
Sure?
No - the rally has been led by Nvidia and semiconductor stocks. And Nvidia will report earnings on 23 August. So this may be a fake rally.
And now?
If Nasdaq and Nasdaq 100 close up 1.5 % today, we would see this as the first sign that a bottom may be in place or slowly forming.
