Techs were a big drag on the Nasdaq today and lookingat a 15 minute of the chart it appears that index wants to move lower. I already have a sell on the Nasdaq from last week so I’ll be looking for signs of weakness and I see two here.
- Moving averages are still in bearish alignment with a sell-off occurring the last time price moved up and touched the 50ema (indicated by green circles). We could move a little higher in the a.m. but today’s late day rally is strictly looking technical at this point.
- I see a potential head and shoulders pattern forming here with a target reaching down to the low 1400’s. We rallied right up to the neckline and I will be watching to see how it reacts, expecting a breakdown.