Nasdaq 100: Still On Plan

At this point today is just a resistance point on the recovery rally off what may now be considered a neckline at 3425.  Something as bearish as a Head & Shoulders, if it comes to be, would have needed a counter bear trend burst of enthusiasm to make a right shoulder, and that is what happened over the last week or so.  Well the burst, not a shoulder (yet).

Our target was 3600 and NDX certainly has the ability to take a short term pullback and then hit and exceed 3600.  But the overall setup remains bearish even if another leg upward comes about but puts in a top lower than the would-be Head.  That would be a fine shoulder.  The pattern does not actualize until the neckline way down there at 3425 is taken out.  But it’s something to keep in mind.  That could be some healthy downside maybe sometime this summer.