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DOW hit intraday record high, NASDAQ underwhelmed again

US stocks ended mixed overnight, probably on sector rotation. DOW closed up 306.14 pts or 0.97% at 31802.44. That came after hitting intraday record high at 32148.04. However, S&P 500 dropped -20.59 pts or -0.54% to close at 3821.35. NASDAQ dropped deeply by 310.98 pts or -2.41% to close at 12609.16.

DOW draw strong support from 55 day EMA to extend recent up trend. Though, upside momentum is still relatively weak, as seen in daily MACD. It’s also capped below near term channel resistance. Nevertheless, outlook will stay bullish as long as 30547.53 support holds. We’d still expect DOW to crawl towards 61.8% projection of 18213.65 to 29199.35 from 26143.77 at 32932.93, which is close to 33k handle.

While NASDAQ dropped notably overnight, it’s actually still contained above last week’s low at 12397.05. Our view is unchanged that fall from 14175.11 is seen as correcting the rise from 10822.57 only. Strong support is expected at 12074.06 (61.8% retracement of 10822.57 to 14175.11 at 12103.24) to bring rebound. That should set the base for up trend resumption later.

However, sustained break of 12074.06 will argue that NASDAQ is already correcting the whole up trend from 6631.42. In this case, deeper, medium-term, correction, could be seen through 10822.57 support.

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