Nasdaq Makes Strong Bearish Move
Daily Nasdaq Chart: Last week the market closed down for the 2nd consecutive week. The Nasdaq's -DMI formed a crossover high, hitting the 45 level, the strongest level since March of 2020. The last 4 days of price action show a "bear flag" forming. ADX is rising at reaching the 25 level (trend strength). Bottom line is that the bears have the upper hand right now as they wage battle with the bulls at the 50-EMA. The 13,000 level would be a key level of support. In my experience, I would expect to see more upside testing by the bulls before a winner is declared (after a crossover high, DMI usually falls closer to 25 before it pivot). We'll find out this week.