Friday, December 9, 2022

Tech Bull Trend Could Change, If Double Top Is Forming


Nasdaq 100 Weekly Chart/Nasdaq Volatility Chart.

Nasdaq 100 Weekly Chart/Nasdaq Volatility Chart.

Is the bull trend in tech about to end? What tech and its volatility index does in the next few weeks will go a long way to answer this question.

This chart looks at the and its  on a weekly basis over the past couple of years.

The trend for the NDX remains up/bullish. No price action of late has changed this trend. It tested its September highs two weeks ago and, so far, those highs look to have held, forming a potential double top.

VXN movement has been shallow the past few months, as it remains inside of a narrowing pennant pattern.

What would stock bulls love to see? A breakout above the September highs and a break of support by VXN.

What would send a concerning message to stock bulls? A break of support at (1) and a breakout of the pennant pattern at (2).

With the election, one week away, which direction the NDX and VXN head over the next couple of weeks, should send a very important message from leadership.

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