Chart of the Day - Thursday, June 11th, 2020

Today’s Chart of the Day was shared by Jonathan Krinsky of Baycrest Partners (@jkrinskypga). It’s a daily candlestick chart of the Nasdaq Composite Index. Bulls woke up with a nasty hangover this morning after celebrating the Nasdaq’s first close above 10,000 yesterday. The index gapped lower by 2.29% at the open this morning, and continued to sell-off throughout the day, to close down 5.27% - the worst day in over two months. John notes, “If you’re a bull here, you want to see the February highs of 9,850 hold. Below that, and we have a potential major false breakout." False breakouts are also referred to as bull traps because the bulls that got long as price broke out to new highs are trapped, and underwater so long as price stays below those old highs. You know what they say...“Out of failed moves come fast moves in the opposite direction.”