A gap-up open on Monday has not resulted in any follow-through by the major market indexes although some are calling the NASDAQ Composite’s move on Monday a follow-through day. As you know, I have no use for such concepts, since stocks were already flashing buy signals along their lows 3-4 weeks ago as noted in these very reports.
The two-day sell-off so far has occurred on declining volume each day in the NASDAQ Composite as it holds above Monday’s gap-up rising window. Monday’s move looks near-term parabolic in a double-top type of set-up here so a deeper pullback would not be surprising.
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