The Nasdaq finally created a new world record high today at 7715. In the next day or so it still could push higher which would make the present spike a bit longer. The longer the spike the better as that usually indicates a longer impending correction. Correction? It all depends on how big any impending correction will be.
If all this bullish hype is going to continue then we should be just looking for a correction, right? The other side of the coin is that this bull market is coming to an end at a double top creating a big H&S at the same time.
A temporary correction would just create the “Right Shoulder” but then blast to another new record high. The 2019 rally was one vertical move as good subdivisions were hard to count out as it’s loaded with diagonal waves.
Easter will be a full moon so by next week it could get very interesting.
Commercials are barley net short so they don’t really confirm any bearish scenario I can come up with, but that also means this market can go in any direction. All it takes is some “Bad News” from any source in the world and the emotional investors could run for the hills.
Protective sell stops are stacking up below present prices, mostly around the bull market bottoms of corrections.
The Gold/Nasdaq ratio is more of an objective look at stocks if they are cheap or expensive when compared to the US dollar gold cash price. My record expensive ratio is 6.38:1, today this ratio sits at 6.03:1. The Nasdaq is about as expensive as it has ever been, so it sure would be ripe for a major correction.