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NASDAQ Composite Will Tell Us If the Rally Will Last

|Includes: PowerShares QQQ Trust ETF (QQQ)

Below is a chart shared with me by my friend and fellow trader, Brendan Egan. The chart illustrates how the NASDAQ Composite is testing a key tentative trendline near the 2,000 level.

When asking the age old question of whether the market will break or bounce at a key support/resistance level on the daily or weekly chart, I tend to look to fundamental analysis. Being a permabear who think P/E is still way too high for many NASDAQ companies and that individuals and institutions will need to sell off equities as the "main street" economy continues to struggle, my bias is towards the rally running out of steam.

Disclosure: No position.