Chart of the Day - Friday, July 31st, 2020

Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). What a day! The Nasdaq 100 ($QQQ) gapped higher at the open by over 1.78%  but quickly went negative, falling over 1.75% from the open. Price managed to clawback that entire loss in the final hours of the day, to close right where we opened. This created a funny-looking candle referred to as a Dragonfly Doji - a candle with a long lower wick, and a close that is nearly identical to the opening price. In a comment to The Chart Report, Steve Strazza told us, "Doji's represent short-term indecision, but they need to be viewed in the context of the underlying trend. When they close at the upper end of a trading range like this, it's hard to interpret it as anything but bullish in the near-term." Essentially this candle reflects the aggressive buying that occurred in the final hours of the day. Seeing that kind of surge going into the end of the day/week/month like this is certainly not bearish.