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Two leading indices, Nasdaq 100 and Germany (DAX), look to be doing something neither has done for the past 5-years.
The Nasdaq 100 last week looks to have “closed below 5-year rising channel support” at (1) above.
At the same time, the DAX index from Germany looks to be breaking 5-year rising support and its 38% Fib ratio at the same time at (2).
We haven’t seen this in 5-year friends, this is a big deal from a Power of the Pattern perspective.
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Last Friday, Joe Friday shared that key topping patterns looked to be taking place in the S&P 500 and NDX, with monthly momentum at levels last seen at the tops in 2000. (See post here). Joe shared last week that a break of support could take the S&P 500 down to the 1,600 level in short order.
Full Disclosure- Due to these patterns, Premium Members are short the S&P 500 and Nasdaq 100.
If you would like to be a Premium Member, we would be honored to have you on board. Membership and sign up can be found HERE.
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