Mini Nasdaq 100: Still Heading South!

It seems that  the Nasdaq is still heading south with the final peak about the last day of the month. The markets also turned south on a full moon, which is supposed to be very bullish for stocks. Most of the time all moon cycles do,  is provide a potential turning point. The Nasdaq  did not follow the other indices to new record highs, but has been heading down since the end of the month. 

Yes, I would like to see more 5 wave sequences develop, but I started with a potential diagonal. The “A, B, ” I show can also work as an impulse, but I would like to see more before we will know with a higher degree of confidence. The further south the Nasdaq goes the less of a chance it will be, for the Nasdaq to push for a new record high. 

6430 seems to be the number to beat which also establish a new record Gold/Nasdaq ratio of 5:1 It now takes 5 ounces of gold to buy one unit of the Nasdaq. That is a huge difference from the days when the Nasdaq was the cheapest at the March 2009 lows of 1.18:1.  It may never reach this extreme ratio again, but we may see closer to 2 or 3:1 again. Just like the other indices,  I’m expecting a Cycle degree correction, which the majority will end up calling a bear market.  By the time the analysts figure out that we are in a bear market or recession, it will be getting close to finishing. 

The majority always wins in a bull market, but in a bear market the majority will always be left holding worthless paper. They don’t take the time and effort to capture the paper gains, like the seasoned contrarians do. In this world you’re either a contrarian or you become a victim of the stampeding mob! Many realize that a top is near, but they think they run for the exits before the mob gets to the door. Good luck with that,  as that has never worked at any major peak in the last hundred years. 

A SC degree correction from 1929-1932 only took three years, so there is no logic in calling for a 600 year bear market, especially if we ignore all solar cycles.  Wave analysts ignored solar cycle #24 in 2009,  and they will ignore when solar cycle #25 starts in 2021. 

The 2009 bottom has a much higher bottom in 2009 so at this time I don’t think that, that price level will ever get hit. Below 2011 lows is my target at this time, which gives us a range between Nasdaq 1000 and 2000.  

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