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The charts show that the Nasdaq 100 is still in a difficult technical situation.

The Nasdaq 100 still faces uncertain near-term outlook despite Monday’s intraday reversal and additional gains on Tuesday, CNBC’s Jim Kramer said, drawing on technical analysis from Caroline Boroden

“The charts, as interpreted by Carolyn Boroden, suggest that the high-tech Nasdaq 100 really should have rebounded this week, and that rebound could continue,” said the Mad Money host. However, Kramer advised to be careful, as Boroden believes that “the overall technical picture remains ugly.”

Kramer said Boroden identified a potential rebound this week for the Nasdaq 100 through Fibonacci ratios, which she and other market experts use to determine time cycles that shed light on when a security might change direction. The root of the Fibonacci strategy is a numerical sequence defined in the 13th century Leonardo Fibonacci, Italian mathematician.

While Kramer said Boroden believes the technology recovery “could have repercussions,” it’s not clear how long it will last. After all, he noted, the strength of technology lasted for about a week and a half at the end of December, before giving way to weakness in early 2022.

In addition, Boroden sees at least two bearish technical indicators that suggest the index may find it difficult to enter a sustained uptrend to new highs, Kramer said.

First, the Nasdaq 100 remains below its 50-day moving average, Kramer said, calling it “the kiss of death for most chartists.” He added: “There are many financial managers who follow these charts, even if they don’t always admit it.”

Nasdaq 100 50-day moving average (green), 5-day exponential moving average (blue) and 13-day EMA (red).

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The second is the Nasdaq 100’s five-day exponential moving average and its 13-day exponential moving average, Kramer said. “When the five-day period crosses the 13-day period, this is one of [Boroden’s] the most reliable signals to sell, and right now it is very relevant for the Nasdaq 100. “

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