Is the Nasdaq About To Fall 25 Percent?

nasdaq composite top bearish reversal pattern big decline forecast investing chart october 29

Technology is the life blood of our current economy and dictates future innovation. The sector has also taken a primary leadership role in the 11-year bull market.

But, as most of you are aware, that doesn’t mean that tech stocks are always smooth sailing. In fact, the Nasdaq and tech stocks can be a bumpy ride! Just check out today’s chart!

Displayed here is a “monthly” chart of the Nasdaq Composite which highlights some a handful of large bearish reversal patterns.

The month of October is not over yet (two days remaining)… HOWEVER, it appears that the Nasdaq Composite index is creating a rather sizeable bearish reversal pattern. As well, this move to the downside is occurring just after the index kissed the underside of the 261% Fibonacci extension level at (1).

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Glancing back at recent history, you can see that a handful of large monthly reversal patterns have lead to significant declines of -25% or more. Should October close out at current levels and confirm this bearish reversal pattern, it would send a message of caution to investors. Stay tuned!

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.