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The Nasdaq into 2017

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This article is published in collaboration with Scutify, where you can find real-time markets and stock commentary from Robert Marcin, Cody Willard and others. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

Three trading days left in 2016 and markets continue to make and flirt with all-time highs. One of these is the Nasdaq 100. The ETF for the Nasdaq 100 ($QQQ) made a new all-time high close on Tuesday. Many will focus on the how that high was made. A trip much higher pulled back to end the day higher, but with a long upper wick. The wick is what traders will not like. A failure to hold the high.

Instead lets look at the bigger picture. From mid October, the QQQ had built a bearish Bat harmonic pattern. It reached the Potential Reversal Zone (PRZ) just after Thanksgiving and reversed lower to rising trend support and at the 61.8% retracement of the pattern. A perfect place to start a new advance. From there it did jump. To new all-time highs in early December. It has held there since.

The consolidation took the form of a symmetrical triangle and Tuesday it broke that to the upside. Along with that the RSI is in the bullish zone and has turned back higher. The MACD has also avoided a cross down and is moving higher. The break of the consolidation gives a target to the upside of 124.45. The weight of the evidence points higher. So who cares about a single candle wick?

Take advantage of the Holiday Sale here! Ends December 26th. Update: Traveling so can't change pricing til Saturday. your win.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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This article was written by Greg Harmon for Dragonfly Capital on Dec 28, 2016.

This article published in collaboration with Scutify, the best app for traders and investors. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

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