Nasdaq soared more than %10 this week. Last Friday, we stated in our Nasdaq is Getting Weaker titled article the percentages of stocks below their 4-week lows were around %35. Except Covid-19 falls in February and March this indicator’s bullish signal worked every time in 2020 and this week was no different.
Now Nasdaq is testing bullish flag’s upper band. As long as this line and September top holds, we can see a reverse move in short-term to 11,600 horizontal support or 100 day moving average which is near 11,156 at the moment. In hourly chart, Macd reversed already from the last bottom which will increase the downside move odds. But long term trend is still bullish and when the flags upper band break above with September top uptrend may continue for a while.