The Nasdaq 100 has seen a BIG reversal over the last 48 hours.
$NDX is now on the verge of breaking out ABOVE its bullish flag pattern – a move through 13,200 could open the door for more gains toward the upper-13,000s if earnings cooperate pic.twitter.com/uJxvj7Uz77— Matt Weller CFA, CMT (@MWellerFX) April 27, 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.