Chart of the day: Make it or break for the $NQA
This is a follow-up from the Bounce Zone series of charts where I highlighted equity indices were at key support levels. After of a week oscillation, the $ESA and $NQA have formed a potential Gartley formation.
What is a Gartley formation? A Gartley is a bullish reversal pattern which is found after severe declines, characterized by short-term double tops and not breaching the last low. If this is indeed a Gartley, the upside target is around the 9185 region.
Now, personally I think the Americans do not know what they don't know about the potential economic impact of the CoronaVirus. Since on Fridays we usually get short covering, therefore the Gartley may not be a Gartley after all. The NQA just made a lower low and the ABCD projection is around the 7400 region; which coincide with a Weekly SSR and long-term trend support (Link up all the troughs from 2010 to today and you'll see the long-term trend support).
Both outcomes are within the realm of possibilities and I would rather let Mr Market tell me which direction he wants to take.
What is a Gartley formation? A Gartley is a bullish reversal pattern which is found after severe declines, characterized by short-term double tops and not breaching the last low. If this is indeed a Gartley, the upside target is around the 9185 region.
Now, personally I think the Americans do not know what they don't know about the potential economic impact of the CoronaVirus. Since on Fridays we usually get short covering, therefore the Gartley may not be a Gartley after all. The NQA just made a lower low and the ABCD projection is around the 7400 region; which coincide with a Weekly SSR and long-term trend support (Link up all the troughs from 2010 to today and you'll see the long-term trend support).
Both outcomes are within the realm of possibilities and I would rather let Mr Market tell me which direction he wants to take.
