Blake Morrow’s Chart of The Day – Feb 12th 2021
NASDAQ 100
Most ascending wedges in the stock market have played as upside breakouts rather than a tradition reversal (lower). This is a byproduct of being in a very bull market. Since the Nasdaq composite closed at an all-time high, the Nasdaq 100 is very close as well. Even though we have an ascending wedge, it seems like the 1275 extension will be tested at 13853 at least. The warning we can take away from this chart is we are indeed in a bullish wedge, but more importantly is a very divergent RSI and slow stochastics which may be looking to roll over.
