Nasdaq Takes a Pause, Bears Show Their Claws
ProTrend Rule #5: Risk is always to the 50-EMA until proven otherwise. The Nasdaq failed to make a new high in early July, and it remains relatively high above its 50-EMA. Whenever the 20-RSI makes a new low, as it did in late June, the direction of ease is downward (or sideways). The Nasdaq may trade within the lines shown, or it could potentially fall to its 50-EMA. Regardless, bullish intensity has eased, and long positions should be taken with caution until this pullback plays shows evidence of support.