Nasdaq Index: Tech Stocks Slip as Warsh Reprices the Fed Forecast

The Nasdaq Composite Index finished lower on Friday after posting a potentially bearish closing price reversal top at 26,700.68. A follow-through to the downside could lead to a two-to-three day correction.

The main trend is up and so is the minor trend, but momentum could shift to the downside if the closing price reversal top is confirmed.

The short-term range is 26,875.52 to 25,910.82. On Friday, the index tested its 50% level at 26,393.17. Trader reaction to this level could determine the near-term direction.

A sustained move above 26,393.17 could indicate the presence of buyers. If it is strong enough to overtake 26,700.68, the reversal top will be negated and traders will likely set their eyes on the August 13 main top at 26,875.52.