Consider The Time Factor In Nasdaq Chart

It's important to consider the “time factor” when projecting key turning points in a chart. These vertical bars represent 20 trading days and while this is an imprecise art one can clearly see a trend around the recent head and shoulder pattern that has been forming over the last 2 months. Tops take time to form and most of the time they wear out the few bears who had the correct analysis on the markets, before they ever get to make any decent gains.

If this time factor I've highlighted here has any significance then sometime around this Friday or next Monday should mark the conclusion of the right shoulder. Then we may have some sideways action while the market makes up it's mind as to whether it's going to complete this topping pattern or reverse and head higher. At this point it could do either as far as I'm concerned as I'm not into trying to guess what the market is going to do as I'm trying to react to what it's currently doing.