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Tech stocks peaked in 2000 and fell hard into 2002, losing around 90% of the index’s value. Since the 2002 lows, the NDX 100 has created a series of higher lows and higher highs. The rally since the 2002 lows, has the NDX back at Dot.com highs.
Joe Friday Just The Facts- Potential topping pattern has formed, back at dot.com highs. A test of falling resistance is in play this week, that could the right shoulder of a head & shoulders topping pattern.
Tech bulls do not want to see weakness start taking place at this falling resistance line. Bulls want a breakout of falling resistance.
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A resistence at this level (a former high 16 years ago) is expected, but notice not only the possible head and shoulders (yet to be proven) but also a potential for a broadening top.