Chart Of Interest

Above is a weekly chart of the Nasdaq composite.. Right now the Nasdaq is at the top of a 2 year channel. Does this mean the market will go lower? Do we go short here? The answer is NO.. We are now in the most bullish seasonal time of the year which means prices should continue to rally, however we are also very overbought and at the top of the channel.. Notice how the previous two rallies points A to B and points C to D rallied for about 441 and 486 points...So far this rally from E to F is 445 points.. So in my opinion I would suggest if you are already long this market, this would be a good place to take "some profits" and maybe tighten up those trailing stops. You don't want to go short, and you don't want to pick a top...This is just a place to be a little cautious.

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