Yesterday's market action was positive.
The Nasdaq Composite edged down 0.2% in below average volume (Point A).
Once again it looked like the indexes didn't really do much, however the Nasdaq continues to quietly build what appears to be a bullish cup-with-handle pattern (Point B).
Leading stocks action was positive.
I mentioned yesterday that 'good handles' on chart patterns tend to slope downwards and that they often have a shakeout just before they attempt to breakout into new high ground. This one has not yet started to slope downwards nor have we seen any signs of a final shakeout. This tells me it probably needs time before it finally makes its move.
What I do like about this handle is how 'tight' it is. Loose and sloppy handles are more prone to failure and so when you see a tight handle such as this one it means there has been low volatility as it's been building the handle (Point C). So far this one gets top marks in that department.
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