If you look at the Naz, a completed right shoulder will be when the naz hits 10,250 area. You could argue that a neck line was at 10750 which was cleary broken today. However, i think the major one is 10250. Thats also an area of support. I suspect that level will break and the naz will fall to the 200 dma which is also the next area of support.
Head and Shoulder on the Nasdaq
- Thread starter derektrader
- Start date
What you have is a downtrend which is lower highs and lower lows on the Nasdaq Composite, look at the highs and lows continuing lower. Trend has switched to down. Bias is now down. Each stock is different and you should look at the stockchart to determine where the stock is headed, trendwise.
With most steep moves up, expect it go down faster, it broke support, lower highs/Lows shows me to stay short. Took off 10% of positions of indexes of leg down, am at break even stops very long term, these stops never changed with exception of rollovers if that occurs. Been selling indexes/hedged 3.5 years and been great year, better than 2008.
Back to rocking chair.
Back to rocking chair.