NASDAQ Bearish Divergence
NASDAQ led the current bullish rally.
NASDAQ appears to be leading the bearish divergence in this stall aka consolidation.
Despite yesterday's candle appearing somewhat bullish with a long lower tail, there is a clear and present bearish divergence in BOTH the MACD and VolDiv; and both crossed under their lagging MA lines respectively.
The Orange box is the consolidation range and the yellow box is the range that the NASDAQ should not be closing the day in. If it does, there is a higher probability to break down out of the orange box, into the red. And again if it closes in the red box area, the indicators should be bearish looking enough to tell that one must watch the breakdown support level next.
Should be happening over the next couple of days.
Now, IF there is a news related spike, it must spike above and close outside of the orange consolidation box, and then remain above the box... for the last attempt to the upside target.
Heads up!
Appears that we will see an increase of volatility to either side soon... 80:20 down:up IMHO
NASDAQ appears to be leading the bearish divergence in this stall aka consolidation.
Despite yesterday's candle appearing somewhat bullish with a long lower tail, there is a clear and present bearish divergence in BOTH the MACD and VolDiv; and both crossed under their lagging MA lines respectively.
The Orange box is the consolidation range and the yellow box is the range that the NASDAQ should not be closing the day in. If it does, there is a higher probability to break down out of the orange box, into the red. And again if it closes in the red box area, the indicators should be bearish looking enough to tell that one must watch the breakdown support level next.
Should be happening over the next couple of days.
Now, IF there is a news related spike, it must spike above and close outside of the orange consolidation box, and then remain above the box... for the last attempt to the upside target.
Heads up!
Appears that we will see an increase of volatility to either side soon... 80:20 down:up IMHO
Commentaire:
Oops... yesterday's candle looks really bad at the top like that. It closed at the lower end of the range, but the pressure from the candlestick pattern looks like the support will break. Technical indicators are already suggesting so.
