Nasdaq Composite Index (2037)

In a blog comment last May, I initially referred to a wall of resistance at 2200. In early August we hit it, and retreated for the third time in two years (a head and shoulders pattern).

Now my long term work has gone negative. Nasdaq is at an important crossroads on the long term chart. It is possible to interpret the recent recovery as a "B" wave in a huge downtrend that began in the year 2000. The implications of such an interpretation would be negative indeed, and I do not want to jump to conclusions here.

For now I'm watching a real short term correction with round numbered support at 2000, and below that, support in the area of the recent intermediate term low at 1900. I'll re-assess the long term outlook once firm short term support has been successfully re-established. Bias negative.