Top and reversal patterns in US stock Indices
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Saxo Bank's Kim Cramer Larsson takes a look at the charts and explains why the Dow looks ripe for correction and why the Nasdaq is flagging imbalance.
For this reversal scenario to be busted, a close above the Doji ie. 26,488 is needed.
As mentioned during the morning call this morning the Nasdaq 100 has formed what looks like a rising wedge pattern.
Markets have indeed been in a happy mood for most of 2019 but maybe things are starting to fade a bit.
The Nasdaq 100 is now indicating RSI divergence ie. RSI is falling as the market has been rising, which is an indication of imbalance. The imbalance is also underlined by the fact that volume has been falling during the uptrend since the New Year.
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