Market Analysis (09 June’21)

The Nasdaq’s TRIX indicator formed a negative weekly divergence with the underlying index during the last 5-6 months. A very similar pattern was also formed in 2019, which resulted in a 20%+ rally in the second half of 2019.

For Nasdaq to stage a 20%+ rally into the 2021 close, the index needs to clear the 14000 resistance, which should coincide with TRIX indicator providing a new Buy Signal.

NDX, weekly

The bullish scenario will be invalidated only if NDX drops below 13000 during the next several weeks (at the moment, this scenario seems unlikely).

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