Courtesy of Doug Short.
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Back in November of last year, I wrote an article entitled: NASDAQ 100 Macro Chart Observations. In it I showcased an inverted head-and-shoulders pattern that I had been watching for some time. I also highlighted the resistance provided by the 50% Fibonacci retracement level (e.g. 2820.00) of the index’s major bear market (2000-2002), and the support rendered from the bullish trend channel.
Back then no one knew for sure if the market was headed higher, as resistance had held twice previously, and the rebound rally in stocks was considered by some to be long in the tooth. But the breakout through the resistance level did indeed provide stimulus for a continued rally; and the inverted head-and-shoulders pattern has since gone to completion. The index currently sits at 3176.00.,/p>
One again analysts are suggesting the rally is overextended. They could certainly be correct. Only time will tell. But the bullish trend channel is still in play, and the next level of resistance is at the 62% Fibonacci retracement level (e.g. 3290.00). I continue to recommend plugging your ears and watching chart resistance and support levels, since charts for all major indices continue to offer very clear parameters. Look for my upcoming parameters for the Russell 2000 and the S&P 500 indices.
Dominic Cimino
Chief Investment Strategist
Financial Advisor
Preferred Planning Concepts, LLC
2800 South River Road #240
Des Plaines, IL 60018
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? 2013, Dominic Cimino of Preferred Planning Concepts, LLC (You can explore the services offered by Preferred Planning Concepts by viewing us on our website at www.ppcplanning.com) Any redistribution, reprinting, or reference to this chart or content is allowed so long as reference to the author and source is acknowledged.
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