Nasdaq futures moved above the 14000 level in the pre-market hours for the first time ever, however, they got immediately rejected and dropped below it by the time market opened. The index continued to drop for the entire trading session finishing the day at the session lows.
What is also important is that the index closed below 13900 level, which was the prior all time highs recorded mid February 2021. If Nasdaq is not able to recapture 13900 and 14000 during the next several sessions, a lot of traders will view yesterday’s new all time highs as the failed break out attempt.
While this type of price action (reversal after the new all time highs) is definitely concerning, there have been cases when similar price action did not result in any meaningful corrections. The most recent examples date back to early December 2020 and well as August 2020. Therefore, it is too early to say if today’s bearish price action will lead to any sustained correction in the second half of April.
NQ, December 2020
NQ, August 2020