The NASDAQ continues to climb in this narrowing trading range that I have to admit, is a bit troubling to me. Often times, these types of channels, lead to an eventual breakdown in the market. So then, how is this avoided? Well, the bulls need to see a breakout to new highs (yet again) because the more complacent the bulls become and the tighter the trading ranges becomes in this never-ending uptrend, the more likely we are heading down real hard, real soon. But like I said a breakout would mute this pattern, and would squash such speculation. Something in which I think the market is still very capable of doing.

Another thing worth noting, I stated this morning that if the market finishes the day in the red today I would be surprised, which in fact I was! The funny thing though, was when I was writing those comments, I told myself that I probably sealed the deal for the bears today, and I did. Mr. Market never ceases to humble me!

By the way made a nice trade on QLD when the NASDAQ was over 30 points down on the day. I went long and benefited from the recovery it made off of its lows.

Tomorrow’s a new month, let’s see what it has in store for us!

Here’s the NASDAQ chart…