COMPQ Nasdaq Composite Daily Chart Enters Correction Phase H&S Pattern Satisfied Gaps

The Nasdaq is now officially in correction territory, down over 10% from the market top at 3200.  The red rising wedge, overbot conditions and negative divergence created the spank down as Keystone highlighted in September.  The MACD histogram, stochastics and money flow are agreeable to a bounce right now but the RSI and MACD line want ot see  alower low in price moving forward after a bounce occurs. Price filled the July open gap yesterday.  There is a juicy gap from early June that will need to be filled at some point forward. The pink H&S (heasd and shoulders) pattern targets the 2700-2900 area so this projection is satisfied.

A bounce should occur due to the histo, stochastics and money flow, but this is likely not the true bounce that begins a rally, it is likely a VST bounce, that should peter out, then when price comes back down watch to see if the RSI and MACD line are set up with positive divergence which will identify the actual near-term bottom. Support levels are 2840, 2810, 2800, 2780, 2750 and 2720.  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.