Nasdaq is testing the upper line of the bullish trend channel. 15,900-16,000 zone might be a major resistance for the index. 14-day RSI is already at the overbought territory. The relative momentum index is over 88. For the last three corrections in the last year, this indicator’s tops were 83, 94, and 93. The slope of the RMI is getting smaller but it did not give a selling signal, yet. Another relatively successful indicator for Nasdaq is Spearman Correlation. Spearman indicator cross under its signal moving average but it did not cross the key level, 80 just yet.
If we summarize the technical outlook, Nasdaq is losing momentum while testing the upper line of the trend channel. If another bullish run won’t come within this week most of the indicators turn negative and selling pressures may increase with them. For downside moves, the current midpoint of channel 15,250 and the lower line of channel 14,500 might become good targets. For upside moves, Nasdaq must break and hold above 15,960-16,000 zone.
