After having several distribution days in the last half a year, with the beginning of 2018 the Nasdaq has further accelerated from its usual uptrend, only to have a sharp 10% decline with volume
increasing. It broke the previous highs later, but on miserable volume
, followed by other high volume
selloffs. The recent rally back to the 50 day Moving Average is also accompanied by significantly decreasing volume
. All of these signs combined with the Bearish Engulfing candlestick
pattern right at the 50 day MA is a really big danger sign for Monday. The S&P500
and the Dow is also showing the exact same patterns.