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Technical Review of NDX 100 Index

NASDAQ 100 Index (NDX) – NDX is one of the more popular stock market indexes. This modified market capitalization-weighted index consists of 100 of the largest non-financial companies on the NASDAQ Composite Index (COMPQ). NDX is heavily skewed toward Technology, Consumer Services, and Health Care sectors. As of 1/14/22, the top 10 constituents of NDX are AAPL (11.87% market-cap weight), MSFT (9.73), AMZN (6.87), FB (4.92), TSLA (4.41), NVDA (3.96), GOOG (3.71), GOOGL (3.51), CSCO (1.79), and ADBE (1.72). The top 10 names combined for 52.5% of the overall NDX market cap.


Nasdaq 100 Index (NDX) is nearing critical support corresponding to the bottom of its March 2021 uptrend channel between 15,564 and 17,412. There is also pivotal support residing near the 38.2% retracement (15,024) from Mar 2021-Nov 2021 rally, 1/10/22 low (15,165.5), and the 200-day ma (14,978). Failure to maintain support confirms a technical breakdown and opens the door for a deeper NDX correction to 14,385-14,487 (Oct 2021 low and the 50% retracement), and below this to 13,949 (61.8% retracement). Key initial resistance is 16,017-16,126 (1/12/22 high and the 50-day ma). A convincing surge above this signals a recovery to 16,413-16,454.5 and above this to 16,537-16,607 (12/28/21 high and Nov 2021 downtrend), 16,764.86 (11/22/21 all-time high), and 17,412 (top of the Mar 2021 uptrend channel).


Source: Chart courtesy of StockCharts.com

To view the entire report go to the Reports tab on the website or click the following:


https://72150fac-a2b1-4107-bcb6-58c3b0a146d7.filesusr.com/ugd/f8f1c6_038ead706bce4c5da678bf5dd6310376.pdf




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