The Nasdaq Composite is in a wedge pattern

All three stock indexes are in a pattern signaling the end of the recent bullish run. The Nasdaq Composite is in a wedge pattern going back to early November. There is an ordinary bullish trend line under the Nasdaq Composite. But over time, the highs have become more and more constrained. This is showing an absence of demand; if demand was good, the highs would be keeping pace with the lows.

The Dow and S&P have moved to the top of their bullish trend channels. The price can crawl up just under this top line, or it can reverse and head for the lower bullish trend line. But, if the Nasdaq Composite plunges, it could take the rest of the market along.

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