But studying the Nasdaq it appears to be forming a different pattern, a potential Head & Shoulder and this could be the right shoulder. I am aware are very often pre-assumed and didn't come about, I had my fair share of that... but that doesn't mean not watching out for new possible candidates.
Obviously Apple is a leading weakening component of the Nasdaq, but nevertheless, this could be a major top and I am ready for a 38%-50% big retracement.
It appears the nice rally since 2009 unfolded in 5 waves ( I am not a great Waver though). The recent tops (so far) building strong resistance and if this current top hold, it certainly will create a . (And by the way, even if the Nsdaq rallies pass the old high towards 2900/3000 it will produce a with negative divergence, but first things first). The trendline since 2009 is quite strong and has been tested several times and we also have rising moving averages. But we have a similar formation on the and a massive negative Divergence on the .
If gets triggered it is the start of a bigger correction.
By that time the trendline will be broken and I don't expect then that the 100d MA will be very strong.
This is a weekly chart, hence it will be a medium term play, so I am looking now on the for first constructive signs to confirm a reversal. Perhaps with a small unit as a start, I am debating if my stop should be just above the old high or should I add there and working a larger S/L because the risk/reward is quite interesting considering a quite large drop. I will certainly add more units on breaking the neckline and later breaking 100d MA.