As the market continues to experience a melt-up, NASDAQ futures have slipped below a key trend line for the first time since the rally began. While this may not seem like a significant event, two consecutive down candles are becoming increasingly rare in today’s market. The 21-day moving average is now the first level to watch, while the more important 50-day moving average remains far below current prices.

The trend line in question has been a key support level for NASDAQ futures since the start of the year. It has held firm through numerous ups and downs, and its breakdown could be a sign that the rally may be losing steam. While it’s important to note that this is just one data point, the implications of this event cannot be ignored.

The 21-day moving average is now the first level to watch as NASDAQ futures struggle to maintain their upward momentum. If this level is breached, it could open the door for further declines. The 50-day moving average, on the other hand, remains a distant target, but its continued resistance could be a sign that the market may have more room to run.

It’s worth noting that the NASDAQ has been one of the strongest performers in recent months, and this trend line breakdown may be a natural correction. However, with the Federal Reserve set to begin tapering its stimulus program soon, investors may need to start preparing for a potential downturn.