Nasdaq remains trapped within a relatively tight range, having held yet again in the pivotal support zone. Note this is the first break below the bottom trendline since the rally began. The market needs to show some resilience here, or suffer the bearish consequences.
Nasdaq 100 Channel
Source: CS First Boston
Failure here would complete a significant top, and could move the market lower. Given recent moves in the Nasdaq/S&P ratio (lower chart), the recent top is likely to stay in place. Expect recent Nasdaq underperformance trends to remain.
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Chew. Spit. Repeat.
Quote of the Day:
“Successful Innovation is not a feat of intellect, but of will.”
-Joseph A. Schumpeter
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