Tech Index Facing Must Hold Support Test!

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This chart looks at the Nasdaq Composite Index over the past 22-years on a monthly basis. The chart highlights that the index has spent the majority of the past 18-years inside of rising channel (1).

The rally off the 2009 lows hit the top of the channel a couple of months ago at (2), where it looks to have created a bearish hanging man pattern as it kissed the underside of the rising channel. It hit resistance as momentum is the highest level since the dot.com highs in 2000.

Selling pressure over the past 6-weeks has this important tech index testing 9-year rising support this month as momentum looks to be moving lower after creating lower highs.

The long-term trend for this index remains up for the Nasdaq composite index, as it faces one of its most important support tests in the past 9-years at (3). If dual support would not hold at (3), look for selling pressure to ramp up!