(See the video above for Frank's complete chart breakdown.)
Is the Nasdaq-100's recent bounce a sign that the bottom is in? We're going to look at several charts to help answer that question.
First, let's remember how we got here. In September, the NDX broke out from a bullish cup-and-handle pattern, producing a 33,200-upside target. That breakout quickly failed, however, and gave way to a bearish pattern that broke down aggressively two weeks ago.
The decline brought the index relatively close to its 26,350 downside target before the current rebound began.
Zooming out, it's telling to see where the bounce originated. Three important forms of support converged in the 25,000-26,000 area: