Chart of the Day - Tuesday, April 20th, 2021

Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It's a daily candlestick chart of the Nasdaq 100 ETF, $QQQ, over the past five months. Alfonso points out that the Nasdaq could be forming a  failed breakout. This bearish pattern occurs when price fails to hold above a prior breakout level. In this case, that breakout level is the February highs, around $336. There's an old adage about failed breakouts - "out of failed moves come fast moves in the opposite direction." Failed breakouts are often referred to as bull traps because the bulls who bought the breakout become trapped when price moves against them. To be fair, we closed slightly above $336 today, so it's still a bit early. But $QQQ is skating on thin ice here, and buyers will need to show up soon. Stay tuned! If we're below $336, things could get messy.