In a world of overpriced equities, the NASDAQ Composite has stood head and shoulders above the other indices.  It rallied 244% from its March 2020 lows, finally topping in November 2021 before running out of steam. Note that it hasn’t tagged its 200-DMA since April 21, 2020.

This morning, it tagged our 14,575 target [see: Jan 6 COMP Update], an ignominious drop of 10.4% so far.As I wrote last week, the bulls had better hope it holds.

continued for members…

We should see a bounce here. But, what happens next will be quite important. There are some very well defined targets down below if the SMA200 breaks down.