Might not seem like it, but the Nasdaq has rallied about 5% so far this week, and heading into the jobs report tomorrow, do we think that the market can continue the momentum? Not likely in my opinion. Whether or not the market sells off tomorrow, remains to be seen, but one thing is certain, the bears are eventually going to jump back in the mix and try to send this market lower and perhaps even try to test the November lows.
The wedge that the Nasdaq currently finds itself in is at a point where a major move in either direction will likely determine the direction of the index going forward. Though today was quite impressive, from a technical standpoint, it closed right at the top of resistance. It’ll be interesting to see whether the shorts try to reload at this point and take the Nasdaq lower.
Here’s the Nasdaq and S&P charts…
