Market is Rebound-Ready

The market is still in a bear market correction, but the Nasdaq is in a technical rebound position. Will hit happen? We'll have to wait and see.

The Nasdaq hit its target of 11,000 on Tuesday (10,733 was the low) and reached the "monthly" 50-MA (see chart). (Also, the S&P reached its "monthly" 50-MA, a presumed support "area.")

I'm watching now for a rebound, but volatility has been high, so we should be cautious going forward. It's been a long decline into this bear market. It may take time to form a bottom.

The interest rate increase of +0.75 point can be seen two ways: 1) the fed is finally going to get inflation under control (good), or 2) or things are going to get worse than expected (bad).

The market will tell us.

For a rebound, I'm watching for the Nasdaq to break back above 11,100, then form a higher low (daily pivot) above that level, and then push above the 50-MA. If not, we're stuck hammering out a bottom or even falling further.

A peek at ADX/DMI shows the +DMI at 15 on the monthly. This suggests a very oversold condition. Watch the "daily" ADX/DMI for +DMI to get above 25 before getting bullish. 

If we fall further, I see the next Nasdaq support level around 9,800. That would give us even better discounts on stock prices, so stay positive mentally.