The first thing is, when we had that incredible reversal yesterday, we had very strong volume to the upside. So that means there's smart money on the sidelines buying stocks. But every time you make a low, you have to retest the lows and you want the retest to be on lighter volume and eventually exhaust the selling pressure. In the meantime, we have earnings coming out and they're great. Further, the Fed never fights market rates, and it's very important that since Friday, market rates have fallen. Some of that is a flight to quality that pushes downward pressure on our treasury bond yields.

Goldman Sachs last week said the Fed is going to raise rates four times. The Minneapolis Fed President, who ran the TARP program under Hank Paulson, says two times. 

TECHNICAL BULLISH AND BEARISH ENTRIES/ TARGET DESTINATIONS :

The key is to retest the lows and exhaust the selling pressure, and this can take a while. I'm ecstatic with the volume on the upside, I'm ecstatic with the positive press on good earnings and the economy is still growing.

On the technical side, NASDAQ has taken some strong doze of fundamental pressure which drove it towards 13703, leading the technical indicators like Relative Strength Index on the daily time frame to oversold conditions. The orderbloc near 13460 - 13862 have created a support zone, preventing a further fall towards May 2021 lows at 12960. Keeping the oversold conditions on daily time frame in view and the liquidity in the market, we are expecting NASDAQ to reverse from current market price and lead its way towards 61.8% fibonacci retracement level at 15441 and the exponential moving average 200.

NASDAQ : An Attempt to Recover from Oversold Condtions

Jan 29 2022