Call me a mega-bear or crackpot, but I think the NASDAQ has ended its run. Anyone following me knows that I can be a bit manic, but my last 8 part series clearly has me back to everything is downhill camp.
That peak last Friday aligns perfectly with core tech stocks hitting their 2.0 fib levels from the bottom of 2009 (Google, Apple, etc) and puts the NASDAQ at 1.6 from the bottom (standard corrective wave B). There are a few outliers like ODFL that are hitting their 2.0 fib level today. Nothing is for certain and there still maybe a little upside. You can see RSI diverge (bear indicator) at the top in the one hour. Not so in the day time scale. It is very normal to see a double top (a small ABC correction) before the major decline. Stocks can often hit 2.146 fib level during this stage. So, be on the look out for a 2nd top with RSI divergence.
Remember, wave analysis cares not about the news. Price is the only thing that matters. World events can affect timing but once a motive wave is started and you make a clear motive wave 1, then everything else is pretty set in stone price wise. I also fully believe in reverting back to the mean for stocks/markets that grow too quickly. Again, in my historical analysis it is not a matter of if but when this will happen. Will that be this correction or the next one, don't know.
FYI, just ask China how quickly something that seems so good can go go bad in a day. All major Chinese markets are down today 4-8%.
This is not trading advice. Just my musings. Hope it helps and good luck.
That peak last Friday aligns perfectly with core tech stocks hitting their 2.0 fib levels from the bottom of 2009 (Google, Apple, etc) and puts the NASDAQ at 1.6 from the bottom (standard corrective wave B). There are a few outliers like ODFL that are hitting their 2.0 fib level today. Nothing is for certain and there still maybe a little upside. You can see RSI diverge (bear indicator) at the top in the one hour. Not so in the day time scale. It is very normal to see a double top (a small ABC correction) before the major decline. Stocks can often hit 2.146 fib level during this stage. So, be on the look out for a 2nd top with RSI divergence.
Remember, wave analysis cares not about the news. Price is the only thing that matters. World events can affect timing but once a motive wave is started and you make a clear motive wave 1, then everything else is pretty set in stone price wise. I also fully believe in reverting back to the mean for stocks/markets that grow too quickly. Again, in my historical analysis it is not a matter of if but when this will happen. Will that be this correction or the next one, don't know.
FYI, just ask China how quickly something that seems so good can go go bad in a day. All major Chinese markets are down today 4-8%.
This is not trading advice. Just my musings. Hope it helps and good luck.
