CHART OF THE DAY – NASDAQ PULLING THE MARKET UP, AND DOWN

NASDAQ PULLING THE MARKET UP, AND DOWN

Markets don’t generally go through a major resistance zone on the first try. Notice it took the S&P 5 tries before it could break through the 2015 high.

I think we can expect the same thing when the Nasdaq tests the all-time highs. It should pull back, and I expect it will take the rest of the markets down with it. Nasdaq will likely pull back to the 5,000 level.

nasdaq
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15 thoughts on “CHART OF THE DAY – NASDAQ PULLING THE MARKET UP, AND DOWN

  1. ras

    Yes, as expected, us major indices have started to pull back ,led by the dow. Put/call ratio reached a critical level and swinging back up, indicating a pull back to previous resistance. Nas could hold up a little longer. When spx/dow/ndx/rut pull back, the pm complex may feel the heat. Interesting times ahead. If semis continue to power up, nas may reach your target. bpgdm has done only 1 day pullback and silver has more room on the downside.

  2. Alexandru Popovici

    agreed Gary, but instead of head-on advance to resistance line, I expect a HCL first to allow the market to recharge for that up-thrust

    1. Alexandru Popovici

      ….and while stocks chart their HCL these days, CRB index and oil will put in their ICL and treasuries the DCH.
      Moving back into commodities & stocks as well as short treasuries is round the corner, later this week, maybe as early as tomorrow post FOMC.

    1. Gary Post author

      You are kidding yourself if you think an intermediate cycle is going to top in 4 weeks. Sure there will be short term corrections. But the intermediate cycle has virtually no chance of topping until September or October.

  3. Gary Post author

    The Nasdaq is now breaking through the 5100 level. If the Fed balks again tomorrow that could be the catalyst to send the Nasdaq up to test 5170-5230. Then a drop into a DCL in August.

    Remember first daily cycles in a new intermediate cycle don’t always have a half cycle low. Sometimes they are just too powerful to correct during the first DC.

  4. vanbc

    Hi Gary, GLD tonage is continuing decline, do you think it is a negative signal for gold? lost 28 ton in 20 days.

  5. kupqaz

    Gary, what do you say to Gold opening 7 bucks higher? interesting that silver not following..

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