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Nasdaq 100 sets in place another outside day reversal

The Nasdaq 100 set fresh records on Friday, when it set a new all time record opening level, at 18,052. The index had closed the night before at 18,004. The higher opening on Friday led the index to a new all time record high, at 18,091. However, the later weekly close was not so positive. That is because the index fell back to a low at 17,902 and later closed at 17,937, with a loss of 67 points on the session. That is what is known as an outside, or Key Day reversal and it came off a new all time record. I have commented on this type of formation many times before and the last time the index did this, it did lead to a few days of lower price action. However, I do have to repeat what I have also said before; that is not always a reliable indicator for future price action. Now, had the Dow Jones and S+P 500 followed suit, then it would have sent a stronger signal, but they did not (albeit the S+P only just avoided doing so). The Nasdaq 100 futures have rebounded, from an earlier indicative opening at around 17,875, currently pricing that at around 17,940

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