Chart of the Day - Tuesday, August 13, 2024

Wasn't filled. Left an island behind. pic.twitter.com/SK0JawtRXu

— Walter Deemer (@WalterDeemer) August 13, 2024

🏆 Today’s Chart of the Day was shared by Walter Deemer (@WalterDeemer).

• The Nasdaq 100 ($QQQ) gapped higher by +1% this morning and rallied throughout the session, closing up +2.5%. 

• Walter points out that today’s gap wasn’t filled. As Walter often says, “How quickly the gaps get filled — if at all—gives us an idea of how strong the underlying trend is.”

• Today’s unfilled gap left the past seven candles in an isolated cluster below $455, marking a Bullish Island Reversal. However, there are two unfilled gaps lurking overhead at $480 and $490. These two gaps are the only potential resistance levels standing in the way of all-time highs.

Takeaway: The Nasdaq ($QQQ) gapped higher this morning and didn’t look back. Today’s unfilled gap left the bears stranded on an ‘island’ below $455. However, the bulls face potential resistance at $480 and $490 before reaching all-time highs.