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Chapter 1. Contemporary Market Case Stud... > NASDAQ Composite ($COMPQ): Daily The...

NASDAQ Composite ($COMPQ): Daily The Rally to 5000

Despite the unprecedented rally, the price action continued higher. Figure 1.4 shows the incredibly bullish price action from early 1999 to the top in March 2000. I discussed the significance of the violated 3.14 extension in my January 2000 NASDAQ Composite market report.

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Figure 1.4.

“This latest NASDAQ rally has been incredible. The volatile action in some of the biggest NASDAQ stocks, such as Qualcomm and Yahoo, has left many wondering if this is truly a “blow-off” top. And that is the big question! In the past few weeks, the index has rallied above the extreme 3.14 projection from the August correction. Although the NASDAQ did sell off after exceeding this level, it has found support in this area. One note of caution: With such sharp action, the index could rally to the 1.618 of the XA leg, which would put it at 4500! Believe it or not, I think this is possible. Stay cautiously long but watch the first area potential resistance area at 4300.”


  

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