Chart of the Day - Tuesday, May 6, 2025

🏆  Today's Chart of the Day was shared by Chris Kimble (@KimbleCharting).
 

• The Equal-Weight Nasdaq 100 ($QQEW) has bounced +15.2% from its April low on a closing basis. However, it remains -9.7% off its February peak. 
   
• Chris notes that $QQEW is kissing the underside of a broken support level at $123. This level coincides with the 61.8% Fibonacci retracement of the recent decline.
   
• A similar pattern kicked off the 2022 bear market. After a sharp rebound in March 2022, $QQEW was rejected at the same confluence of resistance, leading to another sharp decline. 
   

The Takeaway: After a sharp rebound, the Equal-Weight Nasdaq ($QQEW) is bumping up against resistance at $123. While history doesn't repeat exactly, a failure here would mirror the failed rally that kicked off the 2022 bear market.