Head And Shoulder (NASDAQ) and a few reasons to remain bullish.Following a nearly -30% decline in the first half of the year, its worst start to a year ever, the NASDAQ 100 index has at least stabilized in the 11,000s this month. That fragile calm will be put to the test over the next couple of weeks as the heavily-weighted Big Tech stocks report earnings in the coming weeks (see my colleague Josh Warner’s full Big Tech earnings preview report).
Ahead of the fundamental data dump, it’s worthwhile to revisit the index’s outlook from a sentiment and technical perspective:
Ultimately, the NASDAQ 100’s near-term performance will hinge on how investors interpret the Big Tech earnings season, starting with Netflix’s highly-anticipated report this afternoon. That said, the balance of the positioning, technical, and fundamental forces still suggest the index is in a bear market, and traders are likely to fade any near-term rallies at least until prices can break durably above 13,000.
Also anyone who spent countless hours on trading and analyzing would easily see this Head And Shoulder Pattern.
