Breakout Negated?
The Nasdaq recorded its second worst WEEKLY loss of 2024 last week falling 3.6%, and ending a 6 week win streak in the process. WEEKLY doji candles are rare for the Nasdaq with just 5 since the beginning of 2023, with two significant ones at the very round 10000 number putting an end to a very sloppy 2022. They were an excellent indication of a low being put in and the tech heavy benchmark nearly doubled in PRICE to this months highs. The week ending 7/12 recorded another doji and there was another recently the week ending 6/22, which was the middle candle in a bullish three week tight breakout for the Nasdaq which makes this weeks action a bit more concerning. We know the best breakouts tend to work right away, and if they fall apart rapidly afterward it is a red flag. The week ending 7/5 jumped 3.5%, during a traditionally strong holiday-shortened week, so for the index to retreat so powerfully this week should keep investors cautious.