The trading range is narrowing:
The lines are converging on March 30. I suspect that sometime in the next week or so we will see a significant move in the Nasdaq.
Will it be up or down? Tough to say.
Generally when we see a symmetrical wedge pattern on the chart, we assume the breakout will be in the same direction as the long-term trend.
The long-term trend (1yr) is up.
But medium term (<3 months) is down as the Nasdaq has been below ATHs since mid-February.
Over the past several weeks, the Nasdaq has been climbing.
So it’s tough to say if the long-term uptrend resumes or the medium-term down trend accelerates.
But I think we’re going to get a lot more clarity on the general trend of the Nasdaq soon here.
Note that if the Nasdaq pukes lower it could be very bad for the overall markets. We could be looking at a decline of over 20% from all-time highs. That would probably take the Dow and S&P down as well.
Pay very close attention over the next week or so.