Bears went into full assault mode on Wednesday, sending the Nasdaq 100 to a closing loss of 0.9%, states Jon Markman, editor of Strategic Advantage.
That weakness leaves the benchmark only a few points above critical support at 11,904, the 200-day moving average. Bull and bear markets live and die below this key marker. After the close on Wednesday Salesforce (CRM) reported stronger-than-expected financial results. Shares shot up by 15%. Salesforce is an important firm, as it touches many of the biggest corporations in the world with its customer relationship management software platform.
Strength for Salesforce shares will help bulls hold 11,904, yet victory is not assured. Important corporate news on Thursday from Tesla (TSLA), Costco Wholesale (COST), and Best Buy (BBY) will also impact sentiment. Bulls need to bet on the equivalent of an inside flush at this juncture to push back against the bearish foray, which is to say it’s not likely.
Our strategy is simple. If the NDX closes Thursday below the 200-day moving average, we will join forces with the bears. A decline to at least 11,740 should quickly unfold. Resistance is 12,150, the 20-day moving average.
The QQQ Loop: Members bought the WisdomTree Floating Rate Treasury ETF (USFR) on February 24 at $50.27. The position is a cash alternative., and closed Wednesday at $50.30.
