The chart says it all. There is no stopping tech until it reaches the top of that channel some where in mid-January (Jan 19 on current slope). We all know this market is built on fairy tails and unicorn poop. Will the markets stay irrational and take us even higher? Will we finally see the return of common sense and fundamentals? I have been saying this market is a bubble for months and it still went up, so why stop now. I would expect a serious pullback at that trend line either way! If the markets wants to go above it is going to have to make it more attractive, which it will do with a nice correction and consolidation.
RSI on the 1M
Support trend line to the top
Several key trend lines
Komentarz
⋅
Back again and just as I predicted the NASDAQ made a good drop this week to build support to touch/break the channel. Will this be the top and this monster pop, or will the insanity go into to full ludicrous mode (maybe plaid)?
Great work! Early to mid Jan is lookin very volatile...
Davidmjr
⋅
The channels are pretty nice. But I wonder if it makes sense to use regular scale in this timeframe? In log scale the picture is quite different.
Happy new year!
Dr_Roboto
⋅
@Davidmjr, I am never quite sure how to compare log tends verses recent linear market trends. I marked up the log version for reference. From that perspective we are not dot com bubble, but we are clearly above the major resistance line and just crossed over the 1.236 fib level in August.