The NASDAQ seems to be repeating a pattern seen in 2018. The index moved higher in 2018 and also made a double top (see the blue line in the chart below). The RSI however made a lower reading and this divergence caused a a big selloff going into the beginning of 2019.
The same pattern has happened now. The index has made a double top and the RSI is suggesting a divergence. Will this lead to a big selloff in the NASDAQ? Possible.
