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6% Intraday Reversal NASDAQ 100 Selling Climax

Today’s nearly 6% intraday turnaround of on the NASDAQ 100
($NDX) may have signaled the Selling
Climax
I alluded to last Thursday. Of the nearly 9000 issues traded last Friday,
January 22nd, 78.5% declined while only 17.7% advanced, whereas
after today’s stunning late-day reversal advancers and decliners were about
50/50.

In the chart above it also looks like the NDX may have found
some support near the old April 2021 highs when it bounced off the 13725-14000
area and returned to the 14500 level noted last week. There were 792 new lows
on NYSE today and 1755 on NASDAQ. This level of new lows also illustrates some
potential capitulation and is reminiscent of the action in January 2016 just
ahead of the mini-bear low on February 11, 2016.

At a bare minimum we should expect some calm over the next
day or so as the market waits to hear from the Fed after its 2-day FOMC meeting
that wraps up Wednesday.

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