Bears could view today’s DOJ in the Nasdaq as a bearish harami cross, one of the most reliable reversal signals. If this was to be true it would need a gap lower to confirm. The good news is that there is plenty of support to lean on with the 20-day MA a probable level to test should weakness emerge.
It’s a similar story for the S&P as it returns to a relative outperformance against the Russell 2000. Technicals are net positive and the potential for a bearish harami cross reversal is there as it is for the Nasdaq.
It has been a strong advance from the October low. The attempt at a correction in early November was quickly snuffed out, will now be the time we see this happen?More By This Author:Excellent Strength Across Indices Sets Up The Coming WeekRussell 2000 Rebuffed By 200-day MA As S&P And Nasdaq Hold Gains Big Gains On Weaker Than Expected Inflation Data
