Growth Pause?
Many have been waiting for the Nasdaq to back up some, and we know that the markets do their best to confound the most. But nothing goes up in a straight line and since a move off the very round 10000 number the tech-heavy benchmark has been on fire. With the exception of February, the gains have been powerful, but are some warning signs starting to pop up? It may seem like an eternity ago but just last Thursday, which in my opinion, witnessed a pretty strong reversal. The Thursday before, on 7/20, completed a bearish evening star candle, and the WEEKLY chart below shows how the index is following a pattern of one week up and one week down the last 8, and the first 2 decliners the weeks ending 6/23 and 7/7 were relatively benign, but the week ending 7/21 recorded a shooting star that CLOSED more than 400 handles off intraweek highs. This week so far looks like a bearish engulfing candle, but AAPL after the close may have something to say about that. The narrative about tech demise, or better said rotation out of, maybe gaining too much traction. Do not count out the hottest sector of the market just yet.