Thursday, August 2, 2018

NDX Nasdaq 100 Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

The COMPQ and NDX charts, Nazzy Composite and Nazzy 100, respectively, are set up the same as the NDX monthly chart above. The stock market is in its final throes on the monthly basis printing a historic top as this year plays out.

Price prints new all-time highs and the red lines show negative divergence across all indicators except for the MACD line. The price pattern exhibits an ominous rising wedge, the RSI, stochastics and money flow are overbot, and price is extended above the moving averages requiring a mean reversion, all bearish indications. 

The MACD line is long and strong, however, wanting another all-time high after a pull back occurs in the monthly time frame. The ADX is in a strong uptrend so this will have to roll over to signal that the epic top is at hand. Keystone has been explaining the long-term topping process this year and we are getting very close.

The upper band violation demands that price show respect to the middle band, at a minimum, which is also the 20-month MA at 6268, and the lower band at 4958 is also on the table. It would not be a surprise in the least that the NDX would be at 6000-6300 in January-May.

The upside trend was strong in 2014 into the stock market top in 2015, but the filthy and corrupt central bankers stepped in to save the day creating that Tweezer Bottom in early 2016. The central bankers are the market. If you do not understand this simple fact, you are a fool and will serve as one of the bagholder's in the future.

The end game is coming for the stock market, all you can do is keep monitoring the charts. Focus on that MACD line. It is over for the stock market when the MACD line goes neggie d.

The negative divergence for the indicators will spank price lower over the next month or two but price will likely recover back to the current highs due to the long and strong MACD line. It is extremely likely that when price comes back up, say a couple months out in the September-November time frame, after a selloff, the MACD line will go neggie d and that will be THE top for the stock market. The long near-10-year rally will die and these prices will likely not be seen for many years to come.

Since the NDX has been pumped higher by the FAANG stocks (Facebook, Apple, Amazon, Netflix, Alphabet (Google)), the chart tells you that the epic tops are also forming in these stocks during the weeks and couple-few months ahead. Plan accordingly. It will not be surprising at all to see the NDX in the 4000 to 5500 range in 2019-2021. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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