The long term look at the Nasdaq Composite has followed a clear geometry from 1982 until today. Price followed up the 1×1 ascending angle after the bear market which began in 2000. Price popped above the 50% price retrace level and bounced off the 1×1 descending angle (red line) in 2007. Price fell off a cliff at the 50% time cycle and moved down to the 1×2 ascending angle and the 75% price level. If you remember back to March you will recollect the fear that price would go to the next angle down – near 625. The 1×1 descending angle is a few percent above and should be watched as it has stopped price before.
The 1×1 angle of the weekly chart of the 2007-2009 decline is at the same level which strengthens the potential resistance.
The daily chart has been following a geometry created by the move down from January into March. There is nothing special about this time frame, but price sure does respect the parallel angles. I doubt price can break above this angle again but it can follow it up for some time period.
Charts courtesy of Stockcharts.com
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.