NASDAQ Island Top

The image below shows that there is a three-day Island Top on the NASDAQ Composite Index and that is a bearish sign for US markets. An Island Top is formed by a gap up which we had on Monday, and is followed by a gap down which we had today. Since we have made a higher high this month than last month and we have broken the trend line from the October lows it appears the market is rolling over and will be testing those lows to find support. Click on image to enlarge.