The NAS100 weekly chart has negative aspects that are worth noting.
- It has charted a series of lower peaks followed by lower troughs.
- This puts the weekly chart into a defined downtrend.
- The RSI is below 50 (green rectangle).
- This is the bearish side of the indicator and connotes an underlying bearish momentum.
- The NAS100's weekly candlesticks are below the black 30-week EMA and the 30-week EMA has turned down.
1. The daily chart shows that even after three days of blue candles, the NAS100 is still in its bearish channel, between the lower blue and red bands.
2. Typically, trading in this area leads to lower prices if maintained.
3. The daily RSI is also below 50, suggesting a bearish momentum is pressuring the index.
The FOMC statement and press conference will play a role today. A pause is generally expected, as higher yields are tightening financial conditions. If the Fed retains a hawkish tone in the statement and press conference, this is likely to act further on the NAS100.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.