Likely inflection point today in the tech heavy QQQ. The divergences between the Russell 2000 and Dow Jones Industrial Average setting in lower highs and the S&P and QQQ setting in higher highs, is pointing toward a short term drop at resistance.
Using fibonacci time frame analysis, we can see that on or about today is the likely time for this reversal. We can expect a move lower to build momentum for an eventual break higher and potentially to new all time highs.
The advance decline line is showing (not pictured on the chart) a bullish divergence between the September highs and the current highs, indicating that new all time highs are on the horizon, although not yet.
After a rotation downward, many will suspect that we have made a triple top and this is the end of this bull rally.
In reality, we will be forming a stronger base to ultimately break the top.
I believe this price drop is imminent, so please protect positions.
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It looks like this inflection point is turning out as predicted. Traders would be wise to protect long investments at this point.
I agree with your prediction of reaching higher highs at some point. This is starting to look like an Inverse Head & Shoulders pattern which began on 11/07/18 so if we close above 2817 would it not be in play? Just food for thought!
vergun
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@NathanielTosh, Could be. We'll need to head down to $162 'ish level to form the right shoulder if that's the case
NathanielTosh
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@vergun, I will watch for that level on QQQ...thanks Vergun!
KNUTWILLIE2U
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UMMMMM? how is it turning out as predicted? The mkt is ripping
vergun
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@KNUTWILLIE2U, This is an inflection point, it looks like in this case the inflection point is breakout to the upside
NathanielTosh
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Thanks for the info on the A/D line...godd to know!