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.


NDX, 2018 Wedge


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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