Bearish Chart Patterns Suggest the Stock Market Selloff Isn't Over Yet
Many tech stocks (Nasdaq-100 $Invesco QQQ(QQQ)$ , Microsoft $Microsoft(MSFT)$ , ARM $ARM Holdings Ltd(ARM)$ , Synopsys $Synopsys(SNPS)$ , Meta $Meta Platforms, Inc.(META)$ , and TSMC) are forming classical reversal patterns such as Double Tops and Head & Shoulders.
However, fundamentals always take precedence over technical analysis.
I see no major fundamental news that would drive stocks toward their technical target prices.
I reckon these are bear traps, and eventually, stocks will move higher after the U.S. presidential election on November 5th.
However, bulls may only start building their long positions once stocks trade near their necklines.
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