The NASDAQ broke down of the uptrend on the hourly chart which puts more downside into play. I would expect a retest of the underside of the broken channel before the NASDAQ continues lower.
I really wouldn’t care so much if the market weren’t so precariously perched. While this is a less than ideal looking Head and Shoulders pattern, it could still be valid after the recent breakdown.
On the longer term chart, the NASDAQ remains above a very important level. If the head and shoulders pattern comes to fruition on the downside, it would put the long term picture into question.
