Nasdaq's at critical Moment!
07's top had a 24% drop followed by a 19% dead cat bounce before plummeting 50% into recession. It's now 2019 and we just had a 24% drop followed by 19% bounce into resistance. Is this 2019's dead cat bounce before more bearish momentum? For me it's boom or bust at this level! If we break resistance I believe we will continue to new all time highs. If we reject off resistance it will be another 19% dead cat bounce for more bleeding to come. On the bright side if price action rejects resistance 2019 has more immediate support than 07 did. Instead of plummeting 50% I believe we will fall around 30% to the 5200 level. 5200 level will be tested and price action will go from there. By then the market would be officially bearish and would need a lot of momentum for that to be the bottom. I played around with future possibility's on chart after 30% drop occurs but will cross that bridge if we get there. In conclusion: SUMMARY IS BREAK RESISTANCE WERE HEADING TO NEW ALL TIME HIGHS. IF PRICE REJECTS RESISTANCE LOOK FOR 30% DROP TO TEST 5200 SUPPORT LEVELS!
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