Nasdaq E-Mini 100 Intraday Top Update.


The Nasdaq has soared in the last 5 weeks or so, and it sure has been a choppy ride. Even now a small zigzag has pushed the Nasdaq into record territory, but a small leg may still get added on.  The other indices are lagging behind, but there is never any guarantee  that they are all supposed to top out in perfect synchronization.

The market can wobble around at a major record high, and then surprise the majority by making a sudden dip to the downside. It just takes the smallest degree move down, and we are over into the bear market side of things.   This is also when any bad news pushes stocks down further, and any rally after a good news report  will start to die. The market would have to give us lower highs, which is the exact opposite of what happens in a big bullish phase.

This Nasdaq will also be heading to a wave 3 Cycle degree top, but until this top is locked away and in the bag, so to speak, the Cycle degree wave 3 position can’t find a secure home.

We have 3 simple choices for any corrective pattern,  and some big triangle would be the very last thing on my list to look for. A  Flat or a zigzag deserves all the attention in the next 2-3 years.  All the wave counting in the world is useless if we have no clue on what is supposed to come next, which makes the EWP just a short term trade setup analytical tool. The EWP would be far more powerful if all contrarian indicators were incorporated into the EWP, which would reduce all the crazy market calls based on wave patterns that have never been confirmed by anyone.

Sure the markets are struggling to go higher, but I  will remain bearish until we see some downside action. We are getting close to being 4 months away from the 1987 crash anniversary date, which would be part of  the 30 and a 60 year cycle, that WD Gann followers talk about.

Many may think we will get a long grinding super bear market, but remember that the 1929 crash only took 3 years to play out, even 2007 to early 2009 was much shorter.

All the gold ratios used for the Nasdaq and Apple show we are at extremes when using gold as money.  Even the Market Vane report recently hit 91% again, which I consider an extreme indicator as well.

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