It will be a close call but the Nasdaq is threatening to trace out an outside week on the weekly chart. We tracked lower on Tuesday in the appreviated week as part of a seven-day losing streak but we’ve had three strong days of gains since. That’s nearly traced an outside week. To complete it, the Nasdaq would need to close above last week’s high of 12,124.
The last outside wee we saw in the Nasdaq was in March and that was followed by two more weeks of gains. Ultimately, as inflation jumped and the Fed took a more-hawkish stance, those gains evaporated.
This time, a rally could be further fueled by a soft CPI report on Tuesday and a less-hawkish Fed on September 21. That’s certainly not my base case but even small shifts at the margins could move the market.