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Double Top in the Nasdaq...with Momentum Back at 2000 Levels?
01/05/2016 7:00 am EST
Chris Kimble, of Kimble Charting Solutions, takes a technical look at the Nasdaq 100 and points out a concerning place for the bulls, should it start reflecting weakness.
The rally over the past few years has taken the Nasdaq 100 (NDX) back to levels last seen at the heights of the Dot.com bubble in 2000. At the same time the NDX 100 is hitting its 2000 highs, monthly momentum is hitting levels last seen in 2000.
Over the past few years, the NDX may have created a multi-year rising wedge and the weakness of late has it breaking the bottom of the wedge pattern.
The NDX is kissing the underside of resistance lines (1) and (2) at (3) above. This would be a concerning place for the bulls, should the NDX start reflecting weakness.
Full Disclosure: Premium Members are short the Nasdaq, due to this Power of the Pattern situation, with a stop just above resistance.
By Chris Kimble, Founder, Kimble Charting Solutions
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