Just for a minute and take a look at the chart of the Nasdaq for the past two years. It has to be the worst time period ever for the chart. There is no direction, no conviction and more importantly, no sustainability in either direction.
Every dip is met with insatiable buying and every attempt to break out to new highs is met with a sudden reason to sell-off.
That is the current state of the Nasdaq and the market. If you are not trading the market with this in mind, you are buying at the top and shorting at the bottom… and that is no good, my friend.
When you look closely, you actually have a massive diamond topping pattern unfolding on chart that is relatively clean cut, minus this past Monday’s quick trip below rising support.
But it you are just looking at having fun with this chart, you could get creative (as I have done below) and draw out an impressive Superman logo that simply continues to deflect all attempts at new highs.
In any case. remain cautious about this market’s price action on the Nasdaq as well as all the other indices too. Especially as we approach pre-Brexit market highs.
