Nasdaq bullish pattern forming (?)
I put the question mark because the rare reverse head and shoulders pattern is not completed yet. If it gets completed, then technically the major bottom will be made and the index will start rising again and create a new bullish pattern.
Let me explain. Take a Nasdaq 5 year chart. Draw a line from January '01 low through May '01 high and January '02 high. This is the neckline. Left shoulder is the April '01 low, head is the infamous September '01 low and the right shoulder is forming now(? - we will see).
If right shoulder gets completed and the chart breaks the neckline, I predict this to happen within a couple of months at about 2000 level, then we can call a new bull market!
This gets me excited because it is very rare to see such a distinctive Head and Shoulders reversal.
Now what do you say, is Nasdaq near a new bull market?
Good luck to all longs and shorts out there.
Rudy
"Avoid greed, for greed in itself is poverty." |
