NASDAQ-100 (NDX) Cheat Sheet

Updated on 19 Oct 2020, 0800 Singapore Time.

By Kevin Ang, Chief Market Strategist, Finamatrix.AI.

Disclaimer: The information herein is for reference only. No warranty of any kind is given in conjunction with this information. Finamatrix accepts no liability for any loss arising out of the use of this information.

Turbulent Action Week

• US stimulus negotiation halted, selling of NDX early week.
• Europe reported a surge in COVID-19 cases.
• Poor job report on Thursday yet NDX staged a reversal.
• Good retail data nudged NDX upwards in the last session of the week, however, poor market close on a backdrop of bad industrial data and Kudlow’s comments on small chances of relief bill before elections.
• UK claimed Brexit talks over as EU does not want to change negotiation position.

NDX 4-Hourly Chart (8 Weeks)

Technical Momentum

• NDX broke out of range with persistent momentum on 4-hourly. The current pullback is expected, especially with the divergences (orange) in RSI and MACD under the hourly chart.
• Fibonacci 50% level (Fibo50) tested, if tested again and remains intact, NDX is bullish on outlook.
• In the scenario, NDX breaks below 11700, look for an opportunity to short.

What’s Important Next

• U.S. Presidential Elections [Trump’s campaign manager doubts he’ll win].
• Fed Chair Powell speech, U.S. Housing Stats, Crude Oil Inventories & Jobs data.
• Earnings season.

NDX 1-Hourly Chart (2 Weeks)

Proprietary Optimised-RCA Signal

• Risk-Cybernetics Analysis (RCA) signals from a Friday close of 11805 that there is a <37% probability of upside of >11900 and <63% probability of downside of <11750 for the week of 19-23 Oct 2020.

NDX Volatility Summary for the Week

• Given that current pullback is expected and we are in earnings season, NDX should remain in an uptrend so long as it trades within the flag zone above the previous range. Best risk-reward for a long trade is at Fibo50 level (11720~). Alternative entry at 11840~.
• We are, however, mindful that the market is ridden with negative news. Should NDX break below 11700 instead, a good level to short is 11640~.

Finamatrix.AI