Tech bulls concerned if this support breaks!
via Kimble Charting
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!
QQQ (monthly) tagging 1.618-extension