Nasdaq/NQ1! Head & Shoulders complete. Uh oh.
I've been following this development for months and the day of reckoning is almost upon us. That day is the dreaded breaking of a Head and Shoulders neckline. This is the most well known of all technical analysis patterns and if (when) that neckline is broken it gives us a rather clear target where to begin looking for the fall to stop, as the height of the H&S is reflected downward from the neckline.
As you can see, it's a slanted H&S, and I consider this to be more bearish than the "normal" one. The neckline is surprisingly clear on this chart, which is the NQ1! futures chart. It applies pretty well to the Nasdaq (QQQ) as well.
What's it mean in clear language? We have about 18% more to go from where we are at this moment. Today's' low is right on the neckline, but we're slightly above it at the moment so I used the current price point.
Is this a concrete target? Are you kidding me?! Hell no! But the algorithms that control a majority of the market volume will be looking at the exact same data and likely arrive at a similar conclusion.....although they may change their minds a few thousand times between now and then. Mathematically driven algorithms produce mathematical results, so they'll definitely have a specific target goal for each timeframe. Real world factors obviously come into play as well, and if Russia starts lobbing bombs at people all bets are off. Markets care more about war more than a cute pattern scribbled on a chart.
Good luck out there peeps, and if you're in the Ukraine.... well.... move.
As you can see, it's a slanted H&S, and I consider this to be more bearish than the "normal" one. The neckline is surprisingly clear on this chart, which is the NQ1! futures chart. It applies pretty well to the Nasdaq (QQQ) as well.
What's it mean in clear language? We have about 18% more to go from where we are at this moment. Today's' low is right on the neckline, but we're slightly above it at the moment so I used the current price point.
Is this a concrete target? Are you kidding me?! Hell no! But the algorithms that control a majority of the market volume will be looking at the exact same data and likely arrive at a similar conclusion.....although they may change their minds a few thousand times between now and then. Mathematically driven algorithms produce mathematical results, so they'll definitely have a specific target goal for each timeframe. Real world factors obviously come into play as well, and if Russia starts lobbing bombs at people all bets are off. Markets care more about war more than a cute pattern scribbled on a chart.
Good luck out there peeps, and if you're in the Ukraine.... well.... move.
Comment:
So far I'm Nostradamus. Time to get bullish, folks.
Will the candle continue to print bullishly, or will it reverse back down? My guess is on the latter. The entire gap down was closed and it would take an absolutely incredible amount of buying pressure to continue to go upward today.