Do we still have lower highs since the peak of the Nasdaq? That’s a trick question as we can get this in any decline! Because the Nasdaq broke to a new record low at bullet train speeds, We could get a violent reaction but 5 waves pointing in a direction is telling us there is more downside to come. The other indices will catch up, but small difference will happen, is when a big difference appears, then it always needs a second look. The Nasdaq marched to a different drummer again, this time it was just to be the last index to top out.
There are only two trading days left this week, so more downside is an option, but wild swings will surprise us. This may all smooth out a bit more once the Nasdaq trend is more established. Either way we are heading what the mainstream might call “critical support” will come at the 6300 price level. Critical support for what? A new phase in the stock bull market? I doubt it very much!
The only support important enough is the one just before stocks strike out into another 8 year bull market. Not until the majority hate stocks again will a new bull market hatch! Now if only AMZN would crash! After a quick check Amazon’s stock price peaked at $1617 and is now down $120. I will create an Amazon post, but also talk about the Gold/AMZN ratio.