Nasdaq 100 E-Mini: 2000-2019 Wedge Review

Without a doubt, the Nasdaq marches to a different drummer as the 2007 peak never reached new record highs as most other indices did during that rally. For now, the pattern from the 2000 peak to the 2009 bottom can work as a zigzag but it would have to be a “Running Zigzag”  or what the book calls “Truncated”.

The 2009 bottom is still my Primary degree bottom followed by a blistering bull market. Drawing the trend line across the two tops and one trend line up from the 2009 bottom, what do we end up with?

We have the mother of all “Rising Wedges” starting to squeeze the two trends into the cone or “Apex” of the wedge. What do you think will happen when the stock bulls keep getting squeezed into a corner? I will include the link from Investopedia that has a good explanation regarding “Rising Wedges”. 

All investors are distracted with the fundamentals while the “Big Wedge” is giving us a very bearish warning.

I’m looking for a Cycle degree correction but the Nasdaq has no short term support that I can see at this time. Above all the impending bearish phase should be obvious but the crowd may not know until they see it in hindsight. A lot of good that does us unless we take “Hindsight” and always turn it into “Foresight”. The simple answer is that if we ignore the financial past we are doomed to repeat it. All sources of better fitting wave counts are found in “Hindsight” not by flipping our present wave counts thousands of times.

We still have time before solar cycle 24 ends so hang onto your hat, as the winds can change direction and start blowing in from the North West!

Hits: 14