The Nasdaq is getting very close to a point of huge resistance, red dot. That is where the bear trend line from October 2007 top meets 50% Fib retracement from 2007 highs to March 2009 lows. It also happens to align perfectly with the 23.6% retracement from 2000 highs to March 2009 lows.
A potential huge inverse head and shoulders could be developing with the left shoulder completed and the head almost in place. The potential neckline would be the bear trend line.
And here is a daily chart of the Nasdaq. Note how the Fib lines align very well with areas of support and resistance within the current rally from the March lows. My target for this top is 2055.
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