Nasdaq Nears 6 Month Trendline Resistance

Oh… what a difference a month makes. Doom and gloom has been replaced by a market that’s acting great for the bulls. I didn’t expect my swing trade in QLD to pay off in one day. I sold half at the open and used the 15-minute chart (which was also used for the entry) to exit the second half.

With the gap higher Friday, the SP, Dow, and Nasdaq moved over the necklines of those inverse head and shoulders formations. Next resistance becomes their downtrend lines from the highs in October of 2007. For the Nasdaq, that line is about at 2450, and moves down daily. The Dow has touched it’s resistance line, and the SPX line sits at 1410 today.

I’m bullish here short term, and expect the Nasdaq will hit that line before it decides it’s next move.