Nasdaq100

The Nasdaq100 NDX couldn’t hold above the support levels mentioned in our last report at 11376 points and opened the week with a gap below the significant 50%Fib. Level to open at 11472 points signaling that the bears are controlling the market backed by the bad news of the economy, then bears confirmed their control after the FED rate hike of 0.75 % last Wednesday to raise the interest rate to 1.75% and that will be reflected and affecting the earning results of the companies next month, breaking the 200EMA this week and closing below this level at 11265 points is the first confirmation of beginning a bear market on the medium term and may be the beginning of a downtrend on longer term.
The NDX may witness a rebound to test the level of 11376 again and failing to penetrate this level or forming a lower high before even testing this level will be the second bearish signal for the index and that will lead the NDX to more losses and we may witness panic selloff sessions, especially if the NDX break the 10600 points level which is the most important and significant level on the medium term.
Investors with long positions are advised to use a disciplined risk management tools and activate the stop loss with all trades firmly
Investors with short positions are advised to use just 30% of their cash and use the trailing stop and the protective stop strategy
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