The Nasdaq 100 is testing major resistance

Looking at the chart above (click the chart to enlarge) we can see that the QQQQ is testing resistance that has contained all rallies for the past 5 years! This is a critical level in the nasdaq because a large move will most likely develope once the market decides which way it wants to go from here.. Notice also in the lower panel the ratio line which compares the QQQQ to the $SPX (S&P 500 cash index).. You can clearly see that the QQQQ has been weaker than the $SPX since the early part of this year which could be bearish for the nasdaq especially if the nasdaq begins to roll over from here.