This chart looks at the Nasdaq Composite Index over the past 20-years. The index has spent the majority of the past 18-years inside of rising channel (1).

The trend is clearly up as the index is very near all-time highs and nothing of late has changed that trend!

The index did push above the top of this channel a couple of weeks ago, as it was working on a breakout. As it was attempting to break out, it might have created a reversal pattern at (2).

A test of 2-year rising support is taking place this week at (3). For the first time in months, the index is now below its 50-day moving average.

Tech bulls want to see support hold at (3). If it does not hold, don’t be surprised if further selling pressure takes place!




How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past