For those of you who are concerned with chart patterns, there is a “head and shoulders” pattern forming in the Nasdaq.
In a nutshell, this formation is observed when a price peaks, then falls, then peaks at an even higher level, then tumbles, and then peaks again but doesn’t rise as high as the second peak. From there, look out below.
The chart below was made by Bank of America Merrill Lynch’s Stephen Suttmeier and comes to us from Reformed Broker Josh Brown.
Investors are probably well-advised to consider things like earnings and valuations before making a move.
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