The NASDAQ is topping out in log scale. So it can form a bubble or correct. Or walk up and down and correct. I don't know which one is true but it is happening somehow. Dotcom bubble is obvious in the log scale and it scares.
Thank you for your attention! The chart is a monthly log scale NASDAQ chart so the dot.com bubble is very clear. Market yet decided what to do, but we traded below the ceiling for two weeks. There is a backtest likely going to happen in a couple of days. The market traded in a low volume phase so quick surge or drop in the prices is very normal. This is a bearish indicator. So, I believe backtest will fail and a correction is knocking at the back door. A correction will be a healthy move for the market. However, no one knows how bit it is. If we close below 7795 monthly, that can be the initial sign of a great correction. Other support levels are 7459, around 6890, 6425 and around 5800 and 5700 ( very significant support). Below this last level is dangerous level, it could plunge down to 200 moving average. We are far away from those levels now. If we close monthly below 20 SMA, it is an extreme sell signal down to 50 SMA.
ecramer
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I tried creating the same chart and line as you did. In the last month did we break out above that line?
Thank You
ecramer
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Plus it took pretty much the entire bull market from the 2009 lows for this just to barely make it up to that trend line!
ecramer
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Great chart i didn't catch that one on a all data log scale.
The Ocilator that your using down below depicts that we are at the same high as the dot.com except we are not in a throw over situation.
3 rd waves are usually stronger when you look at all the data here at appears that the 90's were in a wave 3 stage.
I could be wrong.
please advise
mkanik
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@ecramer, I replied above. Sorry for replying to wrong box!