Nasdaq Revival:
The old saying goes it’s not how you start but how you finish. Well, the Nasdaq CLOSED the week out well Friday up almost 2%, erasing a 5-day losing streak, its best advance since the huge move of 3% on 11/6 the session after the election. Thursday undercut the lows of 12/20 and therefore created a legitimate double bottom base (it was also beneath its rising 50-day SMA intraday that day but CLOSED above it). On its WEEKLY chart, it did record a bullish hammer candle and notice each of the previous 3 weeks was above the very round 20000 number, but zero of them were able to finish above it. A CLOSE above it next week could ignite a new buying spree. The MONTHLY candle will likely be something to deal with as the shooting star was recorded in December. One has to remain open-minded to all possible scenarios, and trade each individual instrument on its own merits, but remember bearish candles in bull markets tend to be less success-prone than bullish ones in a bearish environment. Trade accordingly.