Both the S&P500 and Nasdaq100 have formed bullish "tweezers" on their monthly chart.
While the S&P has stopped short at a potential resistance around 4170, NQ however has surpassed it's near term resistance of 13000. Hence NQ's original resistance (12900-13000) is now potentially a "support" zone.
The odds have increased that we are no long in a "bear market rally" but instead I am more convinced a new bull has started as can be seen from many stocks that have been forming bases (round bottoms, inverse Head & Shoulders, Adam & Eve patterns etc) and breaking out of these bases. Pullbacks on the way up is inevitable, and any pullbacks that are less than 10% from the most recent high (or do not breach near term supports) is a sign of strength.
I will not be too surprised to see market taking a breather (aka pullback within 10%) sometime this month and when that happens, it could be an opportunity to long. On the flip side however, I will stay very cautious again should NQ breaks below 12800 in the near term
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
While the S&P has stopped short at a potential resistance around 4170, NQ however has surpassed it's near term resistance of 13000. Hence NQ's original resistance (12900-13000) is now potentially a "support" zone.
The odds have increased that we are no long in a "bear market rally" but instead I am more convinced a new bull has started as can be seen from many stocks that have been forming bases (round bottoms, inverse Head & Shoulders, Adam & Eve patterns etc) and breaking out of these bases. Pullbacks on the way up is inevitable, and any pullbacks that are less than 10% from the most recent high (or do not breach near term supports) is a sign of strength.
I will not be too surprised to see market taking a breather (aka pullback within 10%) sometime this month and when that happens, it could be an opportunity to long. On the flip side however, I will stay very cautious again should NQ breaks below 12800 in the near term
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!