A very choppy rally for NQ on Wednesday as buy programs continued to struggle to keep the stock market elevated.
The stock market is clearly in a topping pattern with the technology growth stocks in (Nasdaq) leading the rally and large cap Dow stock lagging the rally. At market top investors are bullish on growth stocks and dump large cap stock.
The Dow and S&P has been in a pullback down mode for almost a month now but NQ was only in a pullback mode for five days, now ready to blast up to another higher high while the Dow and the S&P 500 lagging behind, still in a-b-c pullback wave pattern since making a new high at the beginning of March, and seems likely not able make a new higher high, particularly the Dow.
On the short term 5-minute timeframe, key resistance now for NQ is 5440.
-- A sustained break above 5440 has the potential to ignite a brief short-covering rally as stops get hit above its recent high.
-- A false breakout above recent high could attract aggressive sellers. with support at 5425 then 5400.
Chart of S&P 500 showing a clear a-b-c pullback-down wave pattern.
