Stocks have continued to push higher and are close to new record highs once again. We remain in a lunar green period until later this week, so chances are we will climb to new highs in several major market indexes. Let’s have a look at the Nasdaq chart (click image to enlarge it):
The Nasdaq appears to be breaking out from its large rising wedge pattern. The breakout is to the downside, but we start seeing signs that the market is reversing already, potentially handing us a failed breakout. If the market is really weak, we should have seen a drop to the 4800 support level before seeing some rebound attempt. But buyers didn’t even wait for 4800 and already stepped in at 4900. That is a sign of strength and must be frustrating traders with bets to the downside.
We are still likely to get a big move…
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