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XLK and NAS100 back in play

Both XLK and NAS100 have broken ‘left shoulder’ which means that both bearish reversal patterns are back in play. NAS100 still resembles a ‘Head and Shoulders pattern’ though XLK is more like ‘Broadening Top’. Wrote these 3 days ago.


So is NASDAQ going to do that ‘Head and Shoulders’ or not?

There is a chance but if I could tell with 100% certainty I would go all in. I am going to see whether the index crosses below the left shoulder or not. If it does, there is a good chance. If it does not then of course there is no way the head and shoulders will happen.

If Nasdaq does go below that left shoulder, there are 2 ETFs to look at: QQQ and XLK. QQQ chart looks a lot like NAS100 chart here but XLK is different. XLK actually printed a new 52-week high. However the same guide applies -> look at left shoulder. If XLK falls below, that 52-week high will be remembered as a bull trap.


Charts of XLK and NAS100 captured today.

XLK weekly chart

XLK weekly chart

NAS100 (NASDAQ) weekly chart

NAS100 (NASDAQ) weekly chart


Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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