Slope of Hope Blog Posts

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The NASDAQ Powerhouse

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I confess these days I don't have as much to say about the market as I normally do, largely because there is so much uncertainty as to what's next. On a stock-by-stock basis, I'm able to find all kinds of interesting longs and shorts (which I share during trading days), but the big picture for me is murkier than ever.

The NASDAQ 100 has surged about 25% in just the past few months. Looking at the chart below, you can see where are within a scant 1% of breaking to a new recovery high – – which would put us at the highest nominal level in about ten years!

1211-ndx

I'm sure others would suggest that the pattern is an inverted head & shoulders as well, indicating that the NASDAQ's rise is only just getting started.

Before you embrace that idea, at least take caution that we've had a similar instance in the past when a large basing pattern was formed, approaching new recovery highs, and it simply fizzled out (compare the prior green tinted area with the present yellow one).

1211-ndxlong

That's really all I've got to share today. Enjoy your Saturday!