It's the time of truth for the recovery rally off of last Thursday's corrective low at 5550.50 in the e-Mini June Nasdaq futures contract, which corrected 50% of the entire upleg off of the April low (5347.75) into the May high at 5727.25.
As we speak, Nasdaq's e-Mini is trying to fully test its prior all-time high at 5727.25, but so far appears to be struggling.
In fact mid day Tuesday, Amazon.com (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) were down, with Alphabet (NASDAQ:GOOGL) 6 points off of its intraday high, suggesting strongly that the Nasdaq's big horsemen could be a bit tired, which does not bode well for Nasdaq thrust to a new all-time high.
The question is whether or not the e-Mini is peaking for a second time in the vicinity of 5717/27, leaving it vulnerable to some profit-taking pressures in potential double-top territory.
A decline that breaks and sustains beneath 5688.50 will trigger preliminary signals that such a near-term negative scenario is gaining traction.
