That’s the key query for the market right this moment after the bounce yesterday
US futures are persevering with to look indecisive to this point within the day, with an early bounce being bought into earlier than a second bounce is beginning to fizzle as soon as once more.
Nasdaq and S&P 500 futures are down by ~0.5% now forward of North American buying and selling.
Shares could have snapped the shedding streak in buying and selling yesterday, however the bounce is hardly a sign of confidence simply but with the rebound within the Nasdaq nonetheless preserving beneath its key hourly transferring averages i.e. near-term bias nonetheless extra bearish:
Basically, the market is trying in the direction of tech shares and their resilience proper now as as to whether or not this rout can run any deeper. Therefore, the give attention to the Nasdaq stays one of many key themes as we glance to spherical off the week.
The large query proper now could be whether or not that is the going to finish up being one other buy-the-dip territory for consumers or if we’re seeing them soar into the deep finish.
Each camps are as loud as ever proper now and we are able to solely be guided by the technical ranges to attempt to work out which aspect finally ends up being proper right here.
A push again above the 200-hour MA (blue line) within the Nasdaq shall be essential to cement any potential return again in the direction of 12,000 and that can bode nicely for threat belongings.
However I reckon a fall beneath the low posted on Tuesday might simply ship threat belongings into yet one more tailspin with a deeper ‘correction’ set to unfold.