NASDAQ suffered a steep pull back and ended down -1.94% at 12338.95 overnight, after hitting new record high at 12607.14. Stalled stimulus talks in the US was a factor putting investors on guard. The Congress has less than tw0 weeks to try and reach a comprise before budget deadline. Additionally, the US had the worst days of coronavirus pandemic so far, with daily deaths hitting 3000 for the first time.
Technically, there is no immediate threat to the up trend of NASDAQ so far. As long as 12027.16 support holds, the record run is still in favor to continue. Next target is 38.2% projection of 6631.42 to 12074.06 from 10822.57 at 12901.65.
Meanwhile, DOW is already just inch away from equivalent target, 61.8% projection of 18213.65 to 29199.35 from 26143.77 at 30340.30. Upside momentum in DOW has been clearly diminishing as seen in daily MACD. We’d continue to view this projection level as a major near term test for DOW and a more noticeable pull back could be around the corner. Nevertheless, near term trend won’t be under much threat as long as 29231.20 support holds.
