A rare Broadening Formation on NASDAQ

I have not been watching Nasdaq for quite a while. Part of the reason is because Nasdaq's significance is mainly on technological stock. Frankly, Tech Stock is almost dead in Singapore. I have been working in the Electronic sector which is also the technology sector, and life is certainly hard here as long as you remain local. Most of the tech companies closed down during the shake up in 2001-2003 and distributors here mainly depend on China Market to survive.


Fig 1 Nasdaq Daily Chart

While going through the indices, I happened to have a glimpse of Nasdaq and its latest formation attracts me. It is a broadening formation which sometimes called reverse triangle. According to the book "Technical Analysis of the Future Market", such formation is seen as a top formation.

There is not an exact measurement for this top formation, a rough estimate would be a 50% retracement of the bull wave. If we calculate the retracement base on this, I would say a mark of 1,739 be the target (base on the present setup).Anyway, let's see how it goes from here.

So if this is true, plus what I have been seeing in HSI, DJIA, markets are coming down. If the big boys are in trouble, needless to say STI and the Singapore market.