NDX will lead this next 10-15% correction, starting next week
Recently i did a post on reddit detailing how NDX is historically overbought. NDX has only breached 80 on the monthly RSI 9 times prior to our current prices. Each time resulted in at least a 9.5% pullback and upwards of 30-40% bear markets one some occasions.
I also outlined how NDX is in the intermediate term extremely overstretched. From the moving averages, to the pitchforks.
https://preview.redd.it/umnv9z2e2oa71.png?width=1828&format=png&auto=webp&s=665531ee90751999002351f039431f867a2e1df9
https://preview.redd.it/zp3iv53e2oa71.png?width=1828&format=png&auto=webp&s=19f82bac88c932267c86ef19ad440314e2f25ccc
https://preview.redd.it/367fwz2e2oa71.png?width=1828&format=png&auto=webp&s=cee3319ae8d91a8f0e207a3f947882d961345040
And for historical context, measuring from about the time of the Great Recession on a monthly chart
Standard Pitchfork
Schiff
Modified Schiff
Now before i get into the meat and potatoes of the post i want to outline that NDX is most likely topping. Having a trend termination yesterday.
Possibly printing a Modified H&S Topping Pattern
While five of the six FAANG names are also printing reversal patterns, four of which are possible H&S, with FB printing an intraday triple top
Now that we got that out of the way. This past weekend I did a time cycle analysis on SPX, DJI, and NDX. Measuring from our first correction in our technical new bull market (post COVID) our time cycles, and harmonics overall current position, in time, in the market. And, as you can see in the chart we are nearing what some may call a kill zone.
Notice that our correction in Oct/Sept had a time cycle spike, a sine line peak, and a time cycle trough. Now fast forward to today and what do we have coming up? A spike, sine line peak, and time cycle trough. Now when we get more granular, to the daily chart we diverge slightly between NDX and the rest of the broader market by about a weak, with NDX's new cycle plotted at 07/30, and SPX and DJI's plotted on 08/04.
Now, who has their earnings next week?
When's our next Fed meeting?
You do the math.
I also outlined how NDX is in the intermediate term extremely overstretched. From the moving averages, to the pitchforks.
https://preview.redd.it/umnv9z2e2oa71.png?width=1828&format=png&auto=webp&s=665531ee90751999002351f039431f867a2e1df9
https://preview.redd.it/zp3iv53e2oa71.png?width=1828&format=png&auto=webp&s=19f82bac88c932267c86ef19ad440314e2f25ccc
https://preview.redd.it/367fwz2e2oa71.png?width=1828&format=png&auto=webp&s=cee3319ae8d91a8f0e207a3f947882d961345040
And for historical context, measuring from about the time of the Great Recession on a monthly chart
Standard Pitchfork
Schiff
Modified Schiff
Now before i get into the meat and potatoes of the post i want to outline that NDX is most likely topping. Having a trend termination yesterday.
Possibly printing a Modified H&S Topping Pattern
While five of the six FAANG names are also printing reversal patterns, four of which are possible H&S, with FB printing an intraday triple top
Now that we got that out of the way. This past weekend I did a time cycle analysis on SPX, DJI, and NDX. Measuring from our first correction in our technical new bull market (post COVID) our time cycles, and harmonics overall current position, in time, in the market. And, as you can see in the chart we are nearing what some may call a kill zone.
Notice that our correction in Oct/Sept had a time cycle spike, a sine line peak, and a time cycle trough. Now fast forward to today and what do we have coming up? A spike, sine line peak, and time cycle trough. Now when we get more granular, to the daily chart we diverge slightly between NDX and the rest of the broader market by about a weak, with NDX's new cycle plotted at 07/30, and SPX and DJI's plotted on 08/04.
Now, who has their earnings next week?
When's our next Fed meeting?
You do the math.
Comment:
youtu.be/10wDtn0GsG8
