Chart of the Day - Wednesday, September 15th, 2021

Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). It's a 15-minute candlestick chart of Nasdaq futures since Friday. The major indices closed at a precarious spot yesterday, but buyers showed up exactly where they needed to today. Yuriy points out that Nasdaq futures have formed a bear trap. A bear trap, or failed breakdown as it's also called, is when price briefly undercuts a clear support level, and then quickly reclaims it. These formations often lead to explosive moves in the opposite direction of the breakdown, which in this case means a reversal higher. It's often said that "from failed moves come fast moves in the opposite direction." The bears had their chance this morning, but the bulls fought back, keeping the uptrend intact for now.