Click on Chart to Enlarge
The chart above is the Nasdaq composite daily. It has made a new high above the January highs, and today created a wider range bearish engulfing pattern which is a top reversal pattern potentially.
I view this as potentially meaningful for a number of reasons some already discussed in recent posts, but I will create a short list
- Significant non-confirmation of other indexes to make new highs
- VXN touched lower bollinger band yesterday
- Cycle time analysis turning lower for next couple weeks
- Dual time frame MACD divergence in Nasdaq (Daily, Weekly)
- Price touching the top channel line of the high for the bull market
- Breadth and sentiment major divergences
I view the risk to be a good bit higher than reward potential for the next couple weeks.
I have an eye on inverse positions or put options here currently.
Pete
No comments:
Post a Comment