We posted bearish sentiments on 6th August showing strong signs of bearish strength and divergence that would bring a sharp drop in the indice. We were focused on the perspective that NAS100 breaking an important price action i.e 15000 forming wave 'a' of bearish corrective structure and landed near our two hourly exponential moving average 200. That zone became a point of retracement for NASDAQ and the possibilities were that it was within wave 'c' after completion of a decisive irregular corrective wave 'b'. The index in four hourly chart managed to get itself above our intraday exponential moving averages i.e 8,13,21 and 50 which provided this short term strength to sustain in the current zone i.e above 15050. The market did came down to 14945 but took a bullish reversal with friday closing at 15127. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The bullish conditions are more intact at the moment because of the market structure and gaining of the hawkish momentum but we cant be certain if new highs will be targeted because 15180 strong resistance as our stop loss from previous analysis is still valid. A breakout above the previous high will provide some scorings by ending its move somewhere in the 15200's. But we can see that the 15180 resistance has been acting as a concrete level in terms of providing failure after failure to bulls since last 4 weeks - preventing from a bullish breakout. We would suggest that as far as our stop loss 15185 isnt hit, stay bearish on NASDAQ because the relative strength index in daily will once again create a form of divergence even if the indice creates a new high because the RSI will fail to do so and a strong dovish fall would be awaited. 

NAS100

Aug 15 2021