Stock Market Update

Since March 9th, the stock market has had a nice rally with the NASDAQ leading the way higher. If you look at the above chart of the NASDAQ you'll notice that this rally may be about over.

Today the NASDAQ was down over 3% breaking its uptrend line. The MACD is about to give a sell signal and in the lower pane the advance decline line is showing a bearish divergence. The NASDAQ made a new high (red line) but the A/D line did not.

As you can see we have 3 indications that this rally may be over and that a sell off is about to take place. A move above last week's high will negate the bearish outlook. As always, we'll see what happens.