From Dana Lyons: Wednesday’s reversal lower from 52-week highs in the Nasdaq looks ugly on the chart, but how ominous is it really?
One reason that chartists find their craft so appealing is the optics. They can tell a great deal about a market or security merely by looking at the chart. At times, however, they can get into trouble by making assumptions about the optics that are not borne out by reality. In other words, looks can be deceiving.