A BEARISH PATTERN IN THE STOCK MARKET — THIS ALSO HAPPENED BEFORE THE LAST BIG TECH CRASH $AAPL $AMZN $DIA $DJIA $DOCU $FB $FSLY $PTON $QQQ $SPX $SPY $SQ $TSLA $ZM
The stock market has traced what’s called a negative reversal pattern, which reminds me of March 2000.
In the year 2000, tech stocks crashed. Investors with portfolios primarily consisting of momentum stocks that were popular at that time ultimately lost over 90% of their value. This time is different, in some ways, but similar to 2000 as well. Nonetheless, prudent investors should pay attention.
Let’s examine the issue with the help of a chart.
Chart
Please click here for an annotated chart of the Nasdaq 100 ETF QQQ which tracks the Nasdaq 100 NDX.
Note the following:
• The chart shows a reversal day.
July 15, 2020