The huge Head&Shoulder pattern now stands out very well as the Nasdaq started to implode in the first part of May. In a wild and wooly bull market, the right shoulder would never hold and in this case, the Nasdaq has already declined far enough to create some serious damage to investors portfolios.
I think trillions of dollars have been wiped off the books already and I’m sure more will still go up in a puff of electronic smoke. We have until about June 21 when this contract month has to move to the September month which can cause some more convulsions that few are expecting.
I’m expecting a Cycle degree correction with an Intermediate degree bottom still very far away. If the December bottom is true as an Intermediate degree bottom then we can visualize where my new “A” wave may come in at. This would be close to the 5800 price level.
I’m sure the stock bulls will offer their life so that the bears can have a great barbecue this summer.