Nasdaq Hurdle:

It has been a long run since the bottom in mid March for the Nasdaq more than 3000 handles ago after spinning top candles on 3/18 and 3/23 were registered (they are often adept at calling a potential change in the prevailing trend, especially when they occur in close proximity). To this day there seems to still be a lack of belief in the rally, which could continue to fuel the flames. We have heard comments from high profile names like Dimon saying “bad recession” ahead. Gundlach this week declaring his short position, albeit he did mention the S&P 500, which is lagging the Nasdaq. Talk however is cheap, and PRICE action pays, and if we can see a decisive break above the cup with handle formation present with the Nasdaq on the chart below, it could be off to the races. No, unfortunately not the “Run For The Roses” which was supposed to happen this Saturday in Louisville, but a very vigorous jump higher for the tech heavy benchmark toward the very round 10000 number. The Nasdaq is higher everyday this week (although 2 doji candles have occurred this week), and keep in mind the positive action on Mondays is still a factor up 5 of the last 6.

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