The market has been up each of the last three days but the action doesn't feel very bullish to me. It feels much more like a dead cat bounce. In particular the NASDAQ has risen on declining volume each day. That's the exact opposite of what bulls want to see. I would say that the Naz is a short under yesterday's low, but two things are keeping me from saying that. First, its proximity to the 200-day moving average (potential support) makes the risk/reward ratio poor. Secondly, like many traders, I wouldn't want to initiate such a position ahead of tomorrow's jobs report.
Here's the NASDAQ chart. Note the long upper wicks, which show selling pressure, on each of the last 3 candles. And yesterday we had a spinning top, showing confusion and a potential reversal to the downside.
