NASDAQ: Monthly: 02.04.2021

I projected few weeks ago that Nasdaq had an opportunity to close March with as very bearish candle. It did. The March candle can be classified as a Hanging Man that follows the Spinning Top. Each of them can be considered as a standalone bearish reversal candle, however, the two of them in a row consolidate the bearish odds.

The Nasdaq futures started April as if nothing happened on the monthly scale and they were chugging along until an abrupt pullback in the last 15 minutes of trading hours today. This rather sharp reversal helped to print a Gravestone Doji. The name speaks for itself.
On the chart below, also note an unclosed gap before the candle.

I tried but could not find a similar combination with such a doji in Nasdaq. The only two cases with the somewhat similar candles were in December 2018 and February 2020. They are both pictured on the chart. I also inspected multiple technical indicators on these three days and they are all very similar.
As you can see, the implications could be rather serious, especially if we keep in mind the very bearish combination of the monthly candles.
The doji can be cancelled by a solid green candle closing above the doji’s top, though the odds are slim at this point.

Let’s see how the next week unfolds. My mid term projections remain unchanged for now and could be found in the post by the link below.

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