Chart of the Day - Thursday, April 27th, 2023

Today’s Chart of the Day was shared by Matt Weller (@MWellerFX). The Nasdaq 100 spent the majority of April in a tight range between 12,800 and 13,200. It broke below the lower bounds of that range on Tuesday, but as Matt points out, it's seen a sharp reversal since then. It gapped back into the range this morning, and closed at the upper bounds. The move we saw on Tuesday is beginning to look like a failed breakdown. You could also call it a bear trap or a shakeout, but the point is, failed moves are often followed by sharp moves higher. As of writing, $AMZN is up big after hours, so the Nasdaq will likely break out of this tight range tomorrow.