Nasdaq Bears Like What They See
Chris Kimble | Apr 20, 2018 10:17AM ET
March has produced some major turning points for the Nasdaq Composite over the last 20 years. The index topped out in March of 2000 and bottomed 9 years later in March 2009.
Is it possible that 9 years after the major bottom that we put in a major top (March 2018).
I recently highlighted two major divergences that occurred at this year’s March highs:
- The Nasdaq hit new highs, the S&P 500 and Dow Jones did not.
- The Nasdaq hit new price highs while its RSI (relative strength) indicator did not.
This also occurred at long-term channel resistance. And to make matters worse for tech investors, the Nasdaq Composite is forming a bearish head-and-shoulders pattern. The stars appear to be aligning for market bears once again. But it’s still early on; Will they take control, or let this opportunity pass them by? Stay tuned… and disciplined!
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