Nasdaq Trading in Broad Range
Weekly Chart: It's always good to step back and look at the bigger picture with the market. The Nasdaq attempted to hit new all time highs in late April, but the index fell short. This weekly chart shows how ADX fell below 25 in early April; an ADX below 25 generally signals retracement or range conditions. The Nasdaq is now in a range period, failing to make a new high (and extend the trend) and not making a new low (so far). The 50-EMA is still rising, so it may catch up to price, or price may fall to the 50-EMA. We'll see. But for now, keep expectations in check because it may take a few to several weeks for the range to reach equilibrium and begin the next move (up or down). It's worth noting that the index was in a strong trend in 2020 when ADX was above 25 and reaching levels of over 40 in August 2020 and February 2021. In range, it's generally a good idea to keep your trades on a shorter leash, unless a stock is acting independently of the overall market.