Nasdaq In No Mans Land?
Back in early January we wrote a note that we put a target of 13500 on the Nasdaq, following a break above a bullish ascending triangle pattern. It has since reached that measured move and now seems to be bouncing around, although one should give it credit for bouncing off the very round 13000 number last Friday. Keep in mind measured moves are far from a science, they are more of an art or guideline, as they will have investors selling to early in a potential, long protracted move. I do suspect however that the tech rich index may have a bit of an issue getting above the intraweek high made last week about 300 handles higher from here. Last week also recorded a bearish engulfing candle at all time highs (in easily the largest WEEKLY volume in the last 5 years), although the benchmark has shrugged off dubious WEEKLY candlesticks recently, most notably dojis the weeks ending 11/20/20 and 1/1/21. Some of the mega cap players will have a large say in what happens next with the Nasdaq. AMZN below could push it higher with a move above 3350.