Four-Figure Future?
The Nasdaq just CLOSED out another MONTHLY candle this week and the chart quite frankly is looking heavy. Obviously, we are only a few sessions in but it is taking the look of a bearish engulfing candle. If the very round 10000 number is tested again so quickly there is a good chance it may not hold. With 2 months left in 2022, the tech-heavy benchmark has gained ground in just 3 months thus far and October was a spinning top candle that can be adept at signaling a change in the prevailing trend. After a 6000 handle decline perhaps some sort of dead cat bounce is due or was the 1200-point rally from 10/13-25 it? Keep in mind that trends are more likely to persist than reverse so advantage bears there, and we now know AAPL, the indexes top holding, now has a larger market cap than GOOGL META and AMZN (we suggested a pair trade long MELI and short AMZN yesterday). Apple looks vulnerable here down 11% this week so far and has not recorded a double-digit WEEKLY loss since the week ending 3/20/20. Is the fruit rotten and ready to weigh?