Market Analysis (12 May’21)

Nasdaq index dropped -8% since its recent top in April forming a number of lower lows on its way. The index has been under heavy distribution for several sessions now and the market internals suggest that the large funds continue to sell (see chart below). While the price might bounce in the next couple of sessions (the index is heavily oversold on the short-term basis), the odds continue to favor lower prices ahead.

NQ, 1h

Nasdaq’s Up – Down Volume and NDX, 15min

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