Nasdaq Breaks 9-Year Support: New Bear Trend?
Chris Kimble | Dec 24, 2018 12:07PM ET
Tech is doing something this month that it hasn’t done in 9 years and it could be sending an important message to the broad markets.
This chart from Investors.com and Marketsmith looks at the Nasdaq 100 ETF (NASDAQ:QQQ) on a monthly basis since inception. We applied Fibonacci levels to the 2000 highs and 2003 lows, which highlights that QQQ hit the 161% extension level at (1) in September. While hitting that level, it was also kissing the underside of resistance and it created a bearish reversal pattern.
Weakness since hitting the 161% level now has QQQ breaking 9-year rising support at (2). This break of support sends a negative message to the broad market from a sector that has been an upside leader since the 2003 lows.
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