The market survived selling barrages last Thursday and again on Monday morning when the indexes gapped down significantly. Once again, in zombie-like fashion, however, the indexes dusted themselves off and turned back to the upside. Over the weekend I discussed the potential for lower lows, and that’s what we saw on Monday morning, but it was decidedly short-lived.
The NASDAQ Composite Index essentially bounced off its 20-dema on Monday and has since moved higher. The daily price ranges have compressed on the way up with today’s action constituting stalling action near the double-top highs on much lighter volume. While one can never tell for sure in a QE-infused market, this looks like a pullback is in order from here.
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