In fact, the Nasdaq 100 is almost too perfectly on plan. How often do we map out a bottom and a bounce target, initiate short positions (I hold QID) and see things continue to work out? Answer: These are the markets, so not often.
The setup seems almost too perfect in its tap and drop from resistance. Headlines trumpet Ukraine (and that is bullish), but they also note negatives from Amazon, Visa and Ford. That’s obviously bearish and in line with our bigger picture scenario of renewed economic contraction at some point.
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So the chart is doing what it is ‘supposed’ to do. That makes me a little suspicious when playing by FrankenMarket’s rules. The biggest bullish caveat I have has been the Semiconductors above 10 year support. Here’s the SOX dropping hard today, but still above this support. So… watch the SOX among other things.
