A support line, when broken becomes resistance. Often after support breaks, it is tested as resistance. It is at that time, when the underside of resistance is “kissed” the price action that follows the kiss, becomes very important.
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Russell 2000, NDX 100 and the S&P 500 are testing/kissing the underside of resistance at (1) in the above charts. Nothing has been proven at this time, yet if long, this becomes very important micro price action!
Game plan… Due to the weakness in the NDX 100, the “Power of the Pattern” is suggesting that AGGRESSIVE INVESTORS should attempt to score on defense by owning PSQ.
I mentioned a week ago that key trend reversals looked to be at hand. Today makes those reversals look all the more important! (see trend reversal post here)