On Friday, September 15, 2023, the Nasdaq index experienced a significant drop, declining by 1.75% after hitting a resistance at the 15735 level.
NQZ23, 4hr
Despite a promising surge the day before, the bulls seem unable to maintain a consistent bullish momentum for extended periods. This fluctuation could potentially indicate that the market is in the midst of a correction phase, following its meteoric ascent in the first half of 2023, or it may be bracing for a more prolonged downturn as the year progresses.
The accompanying chart hints at the possibility of the Nasdaq index gearing up for a substantial shift. A breach below the green support line, culminating in a closure below the 14500 mark, could usher in a resurgence of selling pressure. Conversely, if the index surpasses the red resistance line and settles above the 16000 threshold, we might anticipate a trajectory that could reach, or even surpass, the previous all-time high of 17670.
NQ, 1d
In the event of a market downturn, it would be prudent to concentrate exclusively on long-short strategies, which demonstrated superior performance throughout 2022 and would most likely continue to perfect well under the renewed selling pressure in 2023.
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