All the market needed was three days of moving higher, and the selloff from last week is forgotten. Now we’re back to some more areas that will slow down the bulls, and make traders cautious going long.
The Nasdaq bounced off the bottom channel trendline, but is now back at the downtrending 200dma.
This almost looks like a head and shoulders top is forming on the 60-minute Nasdaq chart.
The SPX 500 has run back to resistance of 1400.
Our Dow index has stalled at the 50 day moving average.
This little rally we’ve had the past few days could have been nothing more than end of the month window dressing. I’ll need to see a strong push through the area to believe this market is going higher. I bought some QID off the higher high candlestick on the 60-minute chart, because I see the market going lower.
