The Nasdaq-100 bars painted a bearish reversal pattern in early December. We’ve just seen the effects of this reversal pattern, but as long as trade remains about this support, there’s no reason to worry.
On December 3, the Profit Radar Report took a closer look at the Nasdaq-100 and stated:
“The Nasdaq-100 bars are painting a picture (almost looking like an island reversal) that’s similar to prior reversal patterns (see blue circles). This is a potential red flag, but unless support at 4,285 and 4,210 is broken, it’s premature to worry.”
The reversal pattern delivered again, like it did a couple of times earlier this year.
Thus far, the Nasdaq-100 found support at 4,216, so there’s no reason to worry.
Support at 4,209 is backed up by 4,180. Only a move below 4,180 may draw trade towards the open chart gaps.
The biggest open chart gap for the QQQ ETF (Nasdaq: QQQ) is at 100.26. We may not get there, but if we were, it likely would be a good buying opportunity. Overall, I expect new highs later this year or early next.
Recent Profit Radar Report analysis for the S&P 500 is available here: S&P 500 Suffers from Lack of Participation
Recent Profit Radar Report analysis for the Dow Jones is available here: Dow Jones Repelled by 12-year ‘Insider’ Resistance
Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013.
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