Stocks advanced on Wednesday, erasing all of Tuesday’s losses and more. The finished the day up 93 bps and closed at 4,173. Meanwhile, the NASDAQ 100 ETF () rose by around 86 bps, closing around $339.
The is poised to close the gap at 4,185. That is the next level to look for, and a move to that level will tell us a lot about what happens thereafter. Clearly, if it moves above 4,185; there is a good chance we move up to 4,240. If we fail, at 4,185, there is a good chance we revert and move to retest 4,125.
The bears had a lot going their way yesterday, especially with Netflix (NASDAQ:) down sharply. But they simply didn’t show up to play the game.
After-hours the , were finding resistance at the uptrend that formed on April 7. This could prove to be a retest of the break in trend, and move lower.
isn’t helping. It is breaking a very bearish pattern. The pattern in Bitcoin is on the hourly chart and is negative—a bear pennant. The wave count suggests the next break is lower too.
The relative strength index is breaking to a new low, also suggesting lower prices ahead for Bitcoin. The target price level would be around $51,900, but it could be much lower, with the level to look for $45,000.
has been pushing higher recently, after finding support around $1,675. It may even be forming a double bottom off of support. A push above $1,800 likely confirms the double bottom pattern and the potential to push up to $1915.
Yesterday, I noted that I thought Microsoft (NASDAQ:) could run up to around $275.