NDX Nasdaq 100 Index Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Price Extended; Upper Band Violation; Tech Stocks in Process of Printing Long-Term Top

Now that August is in the rearview mirror and September has begun, the monthly charts can be assessed. The SPX (S&P 500), the major stock index most-closely followed by professional traders and considered synonymous with "the stock market" indicates that a long-term top is in place a la October 2007. The SOX (Semiconductors Index) has also placed a significant long-term top. Ditto the trannies (TRAN; Dow Jones Transports).

INDU, or DJI (Dow Jones Industrials), is set up similarly as the SPX and SOX but the Dow has not overtaken the price high from late January. Ditto the NYA (NYSE Composite).

The COMPQ, NDX and RUT indexes are nearing their long-term tops but are not yet fully negatively-diverged due to the long and strong MACD lines. With the Labor Day holiday behind us and the last four months of the year ahead, it is a good time to review these charts and surmise how the long-term top in the stock market may play out.

The NDX monthly chart above displays the higher high in price as compared to the January record highs. The all-time high is 7691.10 on 8/30/18 and all-time closing high 7660.18 on 8/29/18 a week ago. Note that the chart indicators (RSI, histogram, stochastics and money flow) are negatively diverged, however, the MACD line remains long and strong wanting another higher high in price after a pull back occurs on a monthly basis.

The red rising wedge and overbot RSI and stochastics are also bearish indications. Price is also extended above its moving average ribbon requiring a mean reversion lower.

The Nasdaq 100 has violated its upper standard deviation band since 2016 so the middle band, also the 20-month MA, is on the table, at a  minimum, at 6398 and rising. This level is 1032 points under the current price; about -14% below. The FAANG stocks influence the Nazzy 100 and Keystone will post those monthly charts as well (FB, AAPL, AMZN, NFLX, GOOGL) to assess the stock market topping process only if you long-term moochers of the KE Stone blogs will send in your loose pocket change to keep the lights on and help the underprivileged.

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The chart signals that the long-term top (months and years) is developing and very near for the tech stocks like the March 2000 and October 2007 tops. The May-June 2015 and Fall 2015 significant tops, that Keystone called back then, were also long-term tops. The NDX is special since the Facebook, Apple, Amazon, Netflix and Google (Alphabet) upside joy is extremely strong over the last few years. These stocks are the life's blood of the US stock market.

Even the mighty roll over in 2015 but the global central bankers colluded to stop the slide in early 2016 that created the Tweezer Bottom on the chart. Of course the central bankers will always implement policies that protect the wealthy privileged class that own large stock portfolios. The central bankers perform the wealthy's bidding since they are rewarded by the investment banks for their loyalty with lucrative speaking engagements once they leave public office. Wall Street is a slimy cesspool of corruption that is only a playground for the wealthy.

Watch the purple circle for the MACD line. This tells you when the long-term, multi-month and likely multi-year top, is in place, likely only one to three months away. As price prints new all-time highs watch for when the MACD flattens and rolls over to the downside. This neggie d will mark the top in the tech stocks and likely the FAANG stocks. The expectation is that the NDX will retreat due to the negative divergence with the RSI, histo, stoch's and money flow, say for a month, and then come back up for the matching or higher high. At that time, the MACD will likely roll over with negative divergence. The long-term stock market top is in place now for the S&P 500, SOX and trannies, due to the universal negative divergence with the chart indicators and the NDX should follow their lead over the next one to three months. The purple circle tells you when the top is in on this long-term monthly basis.

The ADX shows that the trend higher since former Fed Chairman stepped in with QE1 in March 2009 to save the stock market and protect the wealthy, remains a strong trend higher. The ADX will need to roll over lower to verify THE top. The ADX was also in a strong uptrend in 2014 but it petered out after the significant tops in 2015.

Also watch the Aroon since the green line will fall to verify that THE top is in for the tech stocks. These prices on stocks may not be seen again for many months even many years. If you are a young person contemplating placing money in the stock market; don't. Let that money sit on the sidelines, do not worry that it will not receive much of a return, if any. Do not be discouraged if you see tech stocks, and the FAANG stocks, remaining buoyant for a couple more months. In a year or two, you will look back and realize it was a smart decision and at that time, depending on how things play out, you may have an excellent chance to enter the stock market at far lower prices. 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.