There’s about 24 minutes til market close and the Nasdaq is puking. Yesterday I pointed out that the Nasdaq was in a wedge formation but it appears it has now broken out of that to the downside and is sitting on critical support at around 13,000:
We’ve seen the Nasdaq bounce off 13,000 at least 6 times in the past, and it’s there now.
Will it bounce again?
If not I can see a drop down to to ~12,570. It would need to hold there or else we could be looking at a rather significant correction.
It is not a good sign that the Nasdaq’s rally from its bottom earlier this month has already fizzled out and failed to come anywhere close to making a new high.
Bulls are still trying to buy the dip, but there’s just more selling pressure and it’s grinding the market lower.
The bears seem to have the advantage, at least in the Nasdaq index, but it’s not a decisive advantage. This is still a tussle.