Dangerous Pattern Could Be In Play For The NASDAQ 100
Chris Kimble | May 01, 2016 12:16AM ET
This chart looks at the NASDAQ 100 Index over the past 10-years. A potential “Head & Shoulders” (H&S) topping pattern could be in play, highlighted in red.
Even if this is NOT an H&S topping pattern, the following situation has me watching Tech very closely: the index broke the 5-year rising support line (A) last fall and the rally over the past couple of months has it kissing the underside of lines (A) and (B) at (1).
The NDX “kissed” the underside of dual resistance of late and has turned a little weak since. If the NDX would continue to be soft going forward, it could reflect a 5-year break of its bull trend.
FYI-This dual kiss of resistance, potentially could be taking place “right at the right shoulder!” A top is NOT proven at this time. This pattern does present a dangerous position for the tech sector.
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