NASDAQ 100 Wedge Pattern Signals Big Move Coming

The NASDAQ 100 (QQQ) is trapped in a tightening wedge pattern, signaling a potential explosion in volatility. Since the August 5th lows, the index has been steadily compressed within converging trendlines, creating a coiled spring.

This compression, visualized on the daily chart, suggests a decisive breakout or breakdown is imminent. The climax approaches on December 20th, when the trendlines intersect, forcing a resolution.

While wedges can break in either direction, the sharply upward-sloping nature of this pattern hints at a slight downside bias. Imagine a spring being wound tighter and tighter – the eventual release can unleash significant force.

Investors should brace for a substantial move, potentially up to 10%, in a short period. The QQQ's compressed price action has the potential to ignite a powerful rally or spark a sharp decline. Careful monitoring of this pattern is crucial for navigating the coming volatility.