NQ (and SPX) - topping? E-MINI NASDAQ-100 FUTURES (CONTINUOUS: CURRENT CONTRACT IN FRONT) CME_MINI:NQ1! Juliac To cut a long story short, I am current erring on the side of bearishness with all 3 indices: DJ, NQ and the S&P500 breaking below the 200 day moving average (MA) last week. The market looks toppish and some technical damage has been done. A short term rebound is possible this week as we are seeing a possible bullish divergence on the RSI . However, I will not turn longer-term bullish until I can see a sustainable rebound crossing back above some major hurdles (eg the 200day MA and then back above the trendline). I will discuss the Nasdaq chart here (and the same discussion can generally be applied to the S&P ): Here are some warnings / technical damage that I am seeing (as indicated in my charts) 1. bearish divergence between price and the advance decline line (ADL) that was apparent after the Nov 22 peak (a warning) 2. breakdown of a major rising trendine on 18 Jan (tech damage#1) 3. breaking below the 200day MA on 20 Jan on high volume (major tech damage#2) Thus far what has been holding NQ (and even S&P ) are the heavy weight poster boy stocks (eg AAPL , GOOG , etc). However we are now startng to see these heavy weights on very shaky grounds now. Stay safe, do not be too eager to pick bottoms. (unless you are a short term or intraday trader). Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)