Chart of the Week: Nasdaq Support

The Nasdaq has pulled back about 140 points over the past 7 sessions – about 6.5%; Looking at near term support, we are about ¾s of the way to the ascending triangle the Nasdaq broke out from in late December.

Nasdaq Support
nasdaq_2.05a.bmp
Source: Gary B. Smith, Real Money

If you want to add or initiate Nasdaq positions, scale in as the index moves towards that breakout point. The retracement towards those level would provide lower risk entry points.

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