Large-cap technology stocks carry a significant amount of influence on the Nasdaq 100 and broader stock market indices.
Not only do many popular tech stocks carry out-sized market caps that sway the cap weighted indices, but the also factor into market sentiment.
Considering this, today’s “weekly” chart of the Nasdaq 100 shows a few reasons why investors should be cautious near-term and stay tuned.
An eerily similar bearish pattern has emerged in 2024 to one that lead to much lower prices in 2022.
As you can see, we have flat price action along with a falling Relative Strength (RSI) Indicator at (1) just like we had in late 2021/early 2022. And this can be a really bearish combo.
These twin peaks are giving me a case of deja vu. Bulls need to step up soon or lower prices may be in the forecast.