In early 2025 the NASDAQ Composite started a monthly rising wedge formation that is still in progress today. In 1999 – 2000 and 2006 – 2007 a similar formation led to a sharp rally followed by a long decline. The current wedge formation by itself is not expected to have a direct relationship with a future rally or decline. Market Maker activity within this formation is what is important.
Extremely large block trades have been increasing in size and frequency at the close for Dow stocks such as aapl, amzn, csco, and nvda. In this case trades at the close have moved up to the 6 to 9 million share range. It appears Market Makers are working to raise prices and sell as many shares as possible to institutions, brokerages, banks, or anyone willing to buy them. If the NASDAQ breaks sharply higher in the coming months a long decline is expected to follow. If it declines quickly out of the rising wedge that will give Market Makers additional time to accumulate inventory before moving higher.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
