Nasdaq looks to have made an important bottom. This may set up a year-end rally.
Several things to note on the following chart. The most important is that the Nasdaq held support line marked by the November low (green arrow), the September high (red arrow) and the July low (green arrow). Also, volume expanded on yesterday’s large turnaround. Further, the stochastic lines are turning higher from an oversold reading below 20. In short, this is a nice set up for a year-end rally.