Doji Drawdown:

“When the facts change, I change my mind. What do you do sir?” A quote credited to John Maynard Keynes, and he could have been talking about the action in the Nasdaq this week. Round number theory is something I have a strong affinity toward, and of course the tech rich benchmark CLOSED above the 10000 figure on Wednesday, and it recorded a doji candle that day, which are adept at signaling a potential change in the prevailing trend. We have mentioned the round number roadblocks with Bitcoin, Tilray, and one other I came across today was the TVIX which hit a brick wall at the precise 1000 number on 3/18, registering a spinning top and the next session a bearish engulfing candle which resulted in a nearly 90% drop. Keep in mind the V shaped base the Nasdaq has displayed are failure prone, and I think one has to look at the index in a cautious way going forward. We spoke it bullish tones on how the major averages are rare to witness gaps, and since the March lows we saw several gap ups. Well following the gap down on 2/24 there were others on 2/27, 3/6, 3/9 and 3/12. Could this be the start of something ominous once again?

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