Is the NASDAQ 100 Overbought?

The NASDAQ 100 ($NDX) is showing signs of being overbought. That said...the market can stay overbought as it stayed over sold several months ago. If the $NDX breaks out of the downtrend channel...then this rally is stronger than I believe. The easy money off the "oversold" bottom has been made, now earnings need to support prices. In the charts below it is apparent that the indicators point to overbought, especially on the percentage over moving average oscillator. Note the extreme reading in the $NDXA150R & $NDXA200R!

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NASDQ 100 ($NDX): Pullback or more?

As with the $SPX, I like to use the A50R, A150R & A200R oscillators. In this weekly chart of the NASDAQ 100 ($ND) you couldn't ask for a more perfect technical chart! All three of the moving average indicators trading over their ma's peaked over their 80 levels, giving an overbought reading! Along with that the index made a double bottom in March, then rallied to it's 38.2% Fibonacci Retracement level and has now started to retrace lower. Where to next? I see the recent lows (1,350) being tested, I see also the similar action to the March '07 pullback.... lets keep an eye on this. One can use the NASDAQ100 Trust ETF (QQQQ), Apple is the top weighting in that.

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NASDSAQ 100 ($NDX)

The NASDAQ 100 ($NDX) Index, mostly large tech companies is teetering on the 50ma/ trend line/ 19.1% Fibonacci Retracement level. Further weakness could accelerate its decline to the 1,350 level.

*Click on chart to enlarge image