Nasdaq Enters Range Pattern

The market is in a confirmed rebound attempt, but it recently entered a low-ADX period of range. The Nasdaq has remained above the key 11,000 level, but ADX fell below 25 in late June, and trend strength has continued to decline below 15 (now at 10). 

Low ADX (low volatility) leads to an eventual period of high volatility, and the market will break upward or downward. Which way it breaks, remains to be seen; but this bear market, downside risk should be respected.

The Nasdaq remains below a falling, daily EMA-50. The rebound attempt needs to get above the EMA-50 (and hold above it) for market to have a chance of reversing the downtrend.

Generally, low ADX in a bear market means keep your powder dry until the market shows its hand.