Nasdaq 100 Index Chart courtesy of Stockcharts.Com, Annotations by Mish
Two days ago the Nasdaq had an 807 point bottom-to-top rally to close slightly in the green.
Today, the index had a bottom-to-top rally of 377 points but closed 360 points lower, down about 2.48%.
DOW - Last 7 Days
Dow Jones Industrial Chart Courtesy of StockCharts.Com, Annotated by Mish
In each of the past two days, the DOW had two bottom-to-top moves of approximately 1,000 points.
The net result is the index closed about where it did two days ago. For the day, the DOW closed about 67 points lower, down about 0.19%.
S&P 500 - Last 7 Days
DOW - Last 7 Days
Dow Jones Industrial Chart Courtesy of StockCharts.Com, Annotated by Mish
In each of the past two days, the DOW had two bottom-to-top moves of approximately 1,000 points.
The net result is the index closed about where it did two days ago. For the day, the DOW closed about 67 points lower, down about 0.19%.
S&P 500 - Last 7 Days
Two days ago the S&P 500 had an 195 point bottom-to-top rally to close slightly in the green.
Today, the index had a bottom-to-top rally of 104 points but closing 54 points lower, down about 1.22%.
Warning!
Beware, these moves are signs liquidity is drying up. Also, beware of short-covering rallies that go nowhere.
Shorts eventually have to cover and often do so at major support levels or after multiple down days.
Rally failures are a sign of supply. Look back further. There were rally failures three of the last four days.
Expect More Down
The rally yesterday already collapsed today.I expect more down in 2022, lots more down.
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