The Dow is moving higher, but the Nasdaq-100 seems to be having trouble getting above current levels. Perhaps some of its components are stuck at their bearish resistance line?
Cisco and Dell Point and Figure Charts
A bearish resistance line is the point and figure version of a downtrend, and is drawn at a 45-degree angle. As we can see from the charts of Cisco and Dell, these stocks are getting very close to testing this line. Recently stocks have had trouble getting above these levels, so it will be interesting to see how these two perform over the coming days. If Dell can manage to trade $28, it would also put the stock back on a buy signal. Cisco has a little more work to do, and would have to hit $23 to crack the bearish resistance line.
Nasdaq-100 Point and Figure Chart
Looking at the Nasdaq-100 Tracking Stock (AMEX:QQQ), we can see the problems the triples Qs have had with this line of resistance. Two prior attempts have tried and failed, so will the third time be the charm? If Dell, Cisco, and the rest of the tech bunch can break theirs, than the composite can break its. If the individual components fail, so will the Nasdaq-100.