Why the Nasdaq Will Pull Back to 5,000

nasdaqFrom Smart Money Tracker: The Nasdaq will likely pull back to 5,000 soon, and bring the rest of the markets with it, prior to breaking out to new all-time highs.

Markets don’t generally go through a major resistance zone on the first try. Notice it took the S&P 5 tries before it could break through the 2015 high.

I think we can expect the same thing when the Nasdaq tests the all-time highs. It should pull back, and I expect it will take the rest of the markets down with it. Nasdaq will likely pull back to the 5,000 level.

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The PowerShares QQQ Trust, Series 1 ETF (NASDAQ:QQQ) was unchanged in premarket trading Tuesday. The QQQ has risen 1.61% year-to-date, trailing the S&P 500, which has gained around 6%.

QQQ-2016-07-26

This article brought to you courtesy of Smart Money Tracker.

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