The Nasdaq 100 (NASDAQ: QQQ) officially hit bear market territory.
Investor pain is on the rise and fear is in the air.
These two items may lead to a bear market bounce in stocks… but a lot of technical damage has already been done.
As I write this blog post, the Nasdaq 100 (QQQ) and other major U.S. stock market indices are down sharply today (again).
And this is making tech bulls nervous.
Looking at the chart below, I’ll call your attention to two very important price points. The first is the QQQ 1.618% Fibonacci extension (1) using the 2000 highs and 2003 lows. The QQQ’s hit this extension this fall and reversed lower.
And the reversal has gained steam into December, with price breaking below the 9 year rising up-trend line (2).
If the breakdown continues, the QQQ’s may enter “price discovery” mode. Careful here.
QQQ Nasdaq 100 ETF “Monthly” Chart
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