COMPQ Nasdaq Composite Daily Chart Fibonacci Retracements

As was previously highlighted, the red rising wedge, overbot conditions and neggie d (red lines) set up a smack down, which occurred. The collapses from rising wedges can be quite dramatic. Note how price dropped directly to the first Fib retracement at 38% at 4680 and bounced. The indicators hint at a sideways to sideways lower pattern for price ahead but this is not cast in stone.

The pink box shows the strong downward trend that was in place during the selloff to begin the year. Interestingly, the big rally from February to April was not a strong trend (ADX stays under 25-ish). The moving averages are of great interest. Note how they are lining out sideways hinting at more sideways movement in price. The 20, 50 and 200-day MA's are at 4815-4845 so this range is uber important. Note how this range is squeezing in tighter as well. Price was rejected at the 50-day MA resistance at 4815 yesterday.

Bulls win big above 4845. Bulls and bears fight between 4815 and 4845. Bears win big below 4815. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.