The Nasdaq finished with a bearish engulfing pattern; the failed upside breakout turning southwards on higher volume selling. Next week is set up for a test of the 50-day MA.
The one index which has pulled away from the pack is the semiconductor index. Unlike many of the indices it has had a very strong start to 2014 - this can only help the Nasdaq and Nasdaq 100 in the weeks and months ahead.
Monday is a profit taker's market, not something to be buying for the long term. It has been a whipsaw time for the market, although Friday gave an indication bears might be able to generate something which can last long than a day.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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