• Having rallied strongly through the 1,665-1,705 resistance area the Nasdaq overcame the 200-day moving average before posting a bearish key day reversal 3 days ago. That took it back below the 200 dma and it is now re-testing that breakout range.
• The last bearish key day reversal was posted on 10th February and saw this index drop over 300 points in the following month
• A closing break back below this 1,665-1,705 range would warrant increased caution.
Chart on Nasdaq Composite
Linear Mode
