NASDAQ - Is it double topping to complete final motive wave?
Is the NASDAQ double topping right now?
I laid out the waves since the start of the NASDAQ using dot com bubble as wave 1. I have always had the top before the March crash at a 2.0. I always though that the NASDAQ would be in a corrective wave like the S&P 500. However, it was so bullish that it look like it has formed an other motive wave to push beyond the 2.0 level. The S&P 500 went corrective and will only make an ATH during the corrective phase, which is normal. Is the current double top the end of the NASDAQ run? Will we get a higher double top during a corrective wave like the S&P 500?
I find it interesting that Microsoft beat expectations but the stock dropped. That makes sense if the Nasdaq has reached its top.
I laid out the waves since the start of the NASDAQ using dot com bubble as wave 1. I have always had the top before the March crash at a 2.0. I always though that the NASDAQ would be in a corrective wave like the S&P 500. However, it was so bullish that it look like it has formed an other motive wave to push beyond the 2.0 level. The S&P 500 went corrective and will only make an ATH during the corrective phase, which is normal. Is the current double top the end of the NASDAQ run? Will we get a higher double top during a corrective wave like the S&P 500?
I find it interesting that Microsoft beat expectations but the stock dropped. That makes sense if the Nasdaq has reached its top.
Comment:
Oh yeah, I could also be completely crazy and have it all wrong once again.
Here is my theory. I think that the coronavirus lock down prematurely caused many of the tech stocks (Google, Nvidia, etc.) to stop short of their 2.0 fib extension even though the NASDAQ actually touched it. Motive waves usually go 1.0, 1.618, 2.0 fib. I have seen it many times in the history of different stocks that they can take a huge drop before finishing wave 5 due to outside influences and will rally back to touch 2.0 before a true corrective wave. My guess is that this entire rally from March is driven by the trading algorithms (dare I say market "physics"?) trying to get those tech stocks to hit 2.0. Most of them hit that around July 13th and what followed was a noticeable drop (Wave A). The small rally since then is wave B, which can often end up making a new ATH before it drops. That is what gives us the nice double top which we are seeing today. What this often represents at the end of larger motive cycle wave sequence is the first wave sequence of a larger corrective 5 wave. Are we about to see a serious corrective wave down to or past March lows? Will be interesting to see.