Considering the flat out epic over-bearish AAII sentiment reading and the nearly as extreme Investors Intelligence, I decided yesterday to give this chart from NFTRH 702’s Market Sentiment segment a nod by adding QQQ.
Of course, it’s just a man staring at a chart and imagining a bullish pattern. But the market is so psychologically intense that I find myself not at all sure that the bearish implications of the weekly index charts are ready to break that way just yet.
Here is the NQ (futures) this morning showing the pattern’s would-be right side shoulder thus far holding support. If the contrary bull situation plays out taking out the red resistance line and the SMA 50 could send NQ to 15132 and the 200 day moving average. Taking it a theoretical step further, that would be the neckline to the pattern, which would project a test of the Q4 2021 highs if it is taken out. Okay, that’s a lot to ask for right now. At this time let’s see if market sentiment and an incomplete pattern can spur a rally of any kind.