Market Analysis (26 May’21)

Nasdaq continues to develop a Rising Wedge pattern on its daily chart. According to the previous 20+ years, this pattern can be both bearish and bullish. Let’s review prior similar historical precedents.

BEARISH:

NDX, 2018 Wedge

BULLISH:

NDX, 2019 Wedge

NDX, 2017 Wedge

NDX, 1999 Wedge

If NDX is to break out above the 14000 level in the next several weeks, the odds will favor bullish scenario:

NDX, Bullish Scenario

On the other hand, breaking below 13000 level will favor the opposite – bearish scenario.

NDX, Bearish Scenario

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