The Melt-Up Still Owns The Trend But The Upside Reflex Is Fading

Shooting star

NDX is putting in a shooting star candle as of writing. These types of candles should always be watched closely following aggressive upside runs. Recall that the late-March reversal lower started with the inverse version of this pattern, the inverted hammer. The current psychology is similar, just flipped upside down.

The melt-up still owns the trend, but the market is no longer trading with the same effortless upside reflex.