NQ1!, Raging Bull Ahead of the Earnings

A strong trend up day on the market. The previous all time high is a launching point to the upside. Regardless of why the buying occurred today, the price action shows a clear buyers domination: a wedge breakout, a solid bullish daily bar.
The investors are betting on strong earnings of the mega techs that will start tomorrow. AMZN led the Nasdaq to upside today.

Notice that the RSI was showing a clear negative divergence which was worked out by a solid upside day. Nevertheless, the overbought condition is there and it may stay there for awhile. The indicators only suggest specific conditions but the market context is what drives the prices up or down. In order to change today's bullishness the market needs to give back all today's gain. That would suggest a false breakout and may lead to the sentiment change. Until then the market can keep going up despite of the overbought condition.

What to expect:
Usually a trend day has a follow up. However, it may not be much. From the market action perspective the price is trying to establish a top of a new balance. Once it is found the price will be pulling back in a search of the bottom.
Buying an aggressive pullback would be a proven strategy until it stops working.

04/23/2019