Nasdaq is close to ending the downtrend as the price is getting closer to the trend line. The zone between the Fibonacci %38.2 level, 13.163, and the trend line 13.450 is the zone to follow for the direction ahead. The volume is getting higher as Nasdaq getting close to the resistance zone but the reasons for the downtrend to appear is still in place. FED is still tightening, and the recession risks increase more than before after the latest GDP print. On top of that, Pelosi’s possible Taiwan visit is a major risk for the financial markets.
As long as the trend holds, bulls are in danger. A turnaround from this close to the trend might cause a sell-off to precious dip. On the other hand, if markets survive the Pelosi trip with minimum damage, recession risk became bad news is good news as FED’s rate hike expectations after two meetings are diminishing fast. A breakout above might lead Nasdaq to March top in the short to medium term.