US charts well worth watching

We saw a nice bullish reversal into the back end of last week, but was it just a short covering move or something more bullish?

US Trader
Source: Bloomberg

I am waiting for some clearer signs, but as it stands, I'm tempted to look at shorts in US indices again.

Take the NASDAQ: We have seen a reasonable rejection of strong horizontal resistance and as long as the bulls can't push the index above 4350 (a nice level for stops), I would be looking specifically for a move into 4100 again.

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If we look at the daily chart, you can see the Elliott Wave is showing that we may even be in wave five. This would indicate a new low – even below 3900!

Interestingly, the index fell to the exact target of the wedge pattern.

Click to enlarge

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