Nasdaq Hitting Resistance

IXICDrew this chart last week, but forgot to publish it. The Nasdaq, as expected, on Friday hit this resistance area and pulled back. The Nasdaq recently broke down under its covid-recovery trendline. This likely indicates either a slower rate of rise or sideway trading for awhile, but it could also signal a larger move downward, particularly if the Nasdaq breaks under 13000 before moving through the identified resistance. The chart shows an oval area at a strong area of resistance, which is a convergence of the Nasdaq Covid-recovery trendline and prior support, now resistance. If it fails to penetrate this resistance level, it could re-test its recent low around 13,000, and if that fails, has several lines of support down to its longer term trend lines.

Personally, I'm bullish. Inflation fears have eased somewhat, especially with the recent weak jobs report. But I also thought the double top in the market wasn't a big deal for the same reason, so take my prognostication with that caveat.

This week may tell the story.