Nasdaq New World Record Highs!

As I’m posting the Nasdaq has hit 7111 already and there still seems to be some momentum behind this move. All other indices I cover need to play catch up, but we know that the Nasdaq can march to a different drummer. In the end we may end up with a completely different wave count, for now.

The February decline sure can fit as a single 5 wave decline which could be part of an expanded top. From the February bottom I believe we have another diagonal wave structure, which created the new record high this morning. Everything seems to be rosy for the majority of investors again as chances are good this, “Tariff War” was just a lot of hype, or any real tariffs on steel and aluminum don’t matter much.

Since the late 2015 bottom we had a massive 5th wave extension which borders on being a diagonal wave structure.  In our EWP book they call it an “Ending Diagonal” but they do not count out the zigzags that make up any diagonal move.  The 4th wave in Intermediate degree is one warning, and a diagonal 5th wave is another, so this ethusium will get replaced by pessimism again.

One thing good about this new top, is that it hasn’t created a double or even triple top. When we do get them, then it is much harder because we have to work out where the decline starts from. In a Cycle degree zigzag, we can’t have the markets soar to new highs, as that breaks every rule in the book, but flat corrections sure can produce “B” wave highs, before they plunge.

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