Wednesday, March 25, 2026 |
|
|
The Nasdaq's Critical Moment The market has been messy, weak, and sideways lately. It's frustrating across timeframes — no clear follow-through to the upside or downside. Sometimes, doing nothing is the smartest move. That's how I see it in this environment. I don't want to force any trades. Instead, I'm sitting on the sidelines, looking for conviction and following where relative strength is. Patience is a position during messy tapes, and right now, the charts are screaming that a key inflection point is near. For the Nasdaq 100 $QQQ the big level lies around 575. |
That's where the lower bounds of a distribution pattern, and the VWAP from last year's lows come into play. That's the line in the sand. That's the zone bulls have to defend if they want to remain in control. Otherwise, things could get ugly. Losing this level opens risks to the downside. But if it holds, this could turn into a powerful failed top — a classic consolidation within an ongoing uptrend. To read whether this level holds, I'm looking at the bigger picture for further clues. For me, the Dollar and credit spreads hold the key. |
The first is the Dollar Index $DXY. A break above 100 would create a strong headwind for equities, signaling investors are rotating into safety and pulling out of risk assets. The second is credit spreads. These indicate how willing bond and credit markets are to take on risk. If spreads widen and complete this base, it shows broad risk aversion is building. If both of these break above their key levels, risk assets are probably in trouble, and we're likely to see QQQ complete its top. On the other hand, if neither of these levels breaks, the market has a chance to dig in here. Momentum just needs a few solid green days to reassert control and form a tradeable low — giving the bulls a shot to turn this sideways action into a setup. Alfonso De Pablos, CMT Director of Research, All Star Charts |
Winning Big on Bonanza Stocks The commodity supercycle is turning... and Jason Perz is sharing the exact playbook he uses to trade it. Join him live on Thursday, March 26 @ 2pm ET. Save your spot before it fills up. |
Alfonso De Pablos, CMT | Director of Research, All Star Charts |
|
|
All Star Charts emails are a financial publication of general circulation and only offers impersonal advice, not tailored to individual needs of a specific client or group. Any comments or statements made herein do not necessarily reflect those of All Star Charts or its affiliates (collectively, "All Star Charts") and do not constitute buy or sell recommendations. Unless specifically indicated, this message is not an official confirmation of any transaction. The contents of any email communications to or from All Star Charts may be monitored or reviewed at All Star Charts's discretion. All Star Charts accepts no responsibility for any loss or damage arising in any way from the use of this transmission and any attachments; it is the responsibility of the recipient to ensure that they are virus free. If you reply to this email, please note that we are a public investor and do not want any material non-public information. We do not agree to keep confidential any information you provide and do not agree to any restrictions on our trading activity, except pursuant to a written confidentiality agreement executed by All Star Charts. |
Want to change how you receive these emails? You can manage your preferences here unsubscribe. © 2026 All Star Charts 624 Broadway, Suite 405 San Diego, CA 92101 |
All Star Charts 624 Broadway Suite 405 San Diego, CA 92101 |
|
|
|