Nasdaq Teetering On The Edge Into Quad Witching

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

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Equities bounced yesterday after weeks of sideways-to-downward price action, with Nasdaq-100 futures up 0.77% after bulls held the line near the 21-day Exponential Moving Average at about 15,390. However, the tech-focused index failed to close above the lower end of its previous range near 15,520 for the third day in a row, while many commonly followed technical indicators such as the MACD and Parabolic SAR are reflecting more bearish sentiment. Bulls need to push prices up about 1.3% to crack the ceiling for fresh all-time highs. If the bears take hold, the day’s major test will once again be the 21-day EMA. From there, it will be important to see whether the /NQ holds at its previous highs near 15,145 – especially because the 50-day Simple Moving Average is just below, so a breach of these two levels could spell further downside. Keep in mind as well that Friday’s Quadruple Witching could spell heightened volatility as the September contracts for the /NQ and the three other major equity indices expire.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.