The NASDAQ Composite closed with a hanging man candle, which may be signalling a reversal to come. Tomorrow’s price action will be important to see if a down/bearish candle will be posted to confirm the reversal. Since we are not at the 127% extension as of yet, the rally could continue to extend towards the 10,712 level but the daily RSI is divergent. Also, we are the same distance from the 200dma today that we were back in March when we were oversold. That equal distance also suggests we may need to consolidate or pullback soon.
Chart of the Day: Nasdaq Composite
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