« Update: Broadening Formation on Nasdaq Composite »

The broadening formation (potential megaphone top) on the Nasdaq Composite, which was initiated as our 'Chart in Focus' on Nov 13th is still very much alive, as the accompanying chart shows.

Nasdaq Composite Megaphone Top

The height of the formation is approximately 180 points and rising (by nature, the broadening formation continues to expand), which currently bring about a target if the pattern is confirmed. It will take a breaking of the falling support line (currently at around 2017 and falling) in order for a confirmation to take place, of course.

So if the downtrend/correction that began last week continues over the next week or so, you'll want to watch the action at the 2015-level very closely.