Before You Buy Tonight’s Dip, Here’s One Chart To Consider

Today’s Nasdaq price action was likely a bit of a shocker for many freshly-minted day-trading gurus.

After accelerating after the cash trading open to gains of more than 2% from Friday’s close, a combination of the S&P 500 tagging unchanged on the year, Dallas Fed’s Kaplan spoiling the party with comments that suggested the Fed punchbowl may not be there forever, and various COVID headlines (including major rollbacks in California) sent the Nasdaq tumbling to down 2% on the day…

This was only the 26th time that has happened to the Nasdaq (closing down 2% after trading up 2% on the day)…

Source: @MikeMcKerr_TDA

BUT… the Nasdaq 100 rallied more than 2% intraday to set an all-time high, then reversed to close down by more than 1%.

And as @Sentimentrader notes, it’s only done that twice. Today was one…

…March 7, 2000 was the other.

It would seem like an historically notable time for the Nasdaq’s melt-up to slowdown.. if not end…

Trade accordingly.