Nasdaq Drained?

The Nasdaq has been a bit sleepy as of late. Sure under the surface there have been some big movers, with the likes of AMD today charging higher, but for the most part leaders have been digesting large moves as they determine which way they will ultimately break. Moving upward obviously is the desired move, if one is a bull, but a prudent pause would not be the worst thing that could occur. There is an ongoing battle with the reversal last Monday (remember that put an end to 11 consecutive Monday advances prior), which was also a bearish engulfing candle, but in all honesty the major averages have been ignoring candles during this historic run, and they to tend to work better near bottoming phases as the market has a positive long term bias. But candles are helpful and at some point they will return to relevance. Is this that time? If the rest of this week can not CLOSE above that 7/13 high, some short term softness may offer some that have been left out of this rally to join the party.The Nasdaq itself is still roughly 800 handles above its rising 50 day SMA. A touch off that line for give it a well needed rest.

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