NASDAQ Rallies Hard Today But Still Lagging on the Daily Charts

Nasdaq market has been lagging badly over the past few weeks which makes the case that today’s rally is just a part of a Sell Rally and part of a very clear right shoulder. Key financial stocks such as Morgan Stanley (NYSE: MS) and Goldman Sachs (NYSE: GS) also look vulnerable.

Indicators suggest that either we start going down as early as tomorrow or as late as Tuesday next week, either way the most likely scenario is down, and for a substantial correction. Only if by some magic way Nasdaq catches up and takes out its bearish formation the scenario will change, but even in that remote possibility there’s other indicators limiting any potential rallies into a more like consolidation move.