The NASDAQ went from being overbought to oversold in two trading sessions. If we look at it objectively, the NASDAQ composite is still in a consolidation range and will not change into a short-term downtrend unless 4100 is taken out at the close. To put it in to perspective, take a look at the weekly chart of the NASDAQ composite which is the fourth chart below. As you can see the weekly chart shows the NASDAQ in a strong uptrend. In the weekly chart note the red candle about six weeks ago which has a similar appearance to the current weekly candle. The range from open to close is greater on the current candle, but not by much.

Looking left on the weekly chart I see nothing but strength, so this market is going to have to change to a downtrend before I get too pessimistic. Read full report