Here are the major trading channels as I see it. Right now the NDX is at the same spot as Dec 15, 1998. During the dot com bubble this is where stocks exploded into full blown bubble. Given all of the headwinds in teh markets right now it seems impossible to believe that we are going to see the same rally. You can also see how far above the 2009 channel the NDX is now. It is a good 20% above that channel. I am not saying we are looking at a dot com bubble pop, but the realistic risk vs. reward clearly looks like 99% risk with 1% reward. Now, the market has been ridiculously irrational since the COVID crash, so who am I saw to say it will not continue to climb higher. NDX could make a big breakout after 2 weeks of puling back to go dot com, it could just keep riding up the resistance trend line of the channel for another several months, or it could make a sizeable pull back to the 2009 channel.
Good luck and trade wisely.
1w
1d
Good luck and trade wisely.
1w
1d
