Investors are hoping that a strong January is just the start to a strong recovery for stock prices. Particularly, tech stock prices.
The selloff hit tech stocks particularly hard as a slowing economy and inflation are strong headwinds for growth stocks. Investors hope these headwinds slow, or go away in 2023.
Today, we look at the chart of an important stock market index to see what may be brewing over the coming months…
“The facts, Ma’am. Just the Facts.”
Below is a long-term “monthly” line chart of the Equal Weight Nasdaq 100 ETF (QQEW). We can see that despite the vicious selloff, QQEW held its rising 13 year price channel support.
The stair step bounce that has ensued has helped to form a very bullish stock market pattern: an inverse head and shoulders. Currently, price is testing the neckline of this pattern. This will turn bullish IF a breakout takes place here.
A tech breakout would also send a bullish message to the broader market and economy. Stay tuned!!
Equal Weight Nasdaq 100 ETF Chart
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