The gap down was bought after mid-day but the buying was not enthusiastic. Volume was lower today than yesterday’s distribution day.
A one or two day counter trend rally back to the 50 day moving average would not put price in a good position to continue higher. Next Thursday completes 100% of the time cycle of the May to July range. Price could thrust up into late next week before the market becomes overbought and falls apart again.
Charts courtesy of Stockcharts.com
Tags: Distribution Day · Nasdaq Charts · Standard and Poor's 500 (S&P500) · VolumeNo Comments
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