NDXA150R Nasdaq 100 Percent of Stocks Above 150-Day MA

The SPXA150R is a favorite long-term indicator of Keystone's since it is one of the few signals that you can literally bet the farm on. The SPXA150R is the percent of stocks above the 150-day MA for the S&P 500 index. If this is 90% or higher, you can bet the farm on the short side. The NDXA150R should be no different. It is shown above and is the percent of stocks above the 150-day MA for the Nasdaq 100 index. Price peaks at 88-89 for the June and February tops. Price is up to 85 so you can see the writing on the wall. Tech stocks will experience a wicked spankdown going forward.

The NDX daily chart is negatively diverged and coming offf overbot levels so that is good for a pullback. Ditto the NDX weekly chart, however, this is not yet the top on the weekly basis. The NDX weekly chart indicators are all neggie d except for a long and strong MACD line. Thus, the neggie d indicators on the weekly will conspire with the neggie d on the daily chart to create weakness for a few days or week or so. The NDX will then recover after this brief pullback because the MACD still has juice on the weekly basis. Price should print another matching or higher high say as July ends and August begins. At that time, the MACD line will likely go neggie d and the top will be in on the weekly basis and usher in a multi-week decline. Plan accordingly.

Interestingly, since the NDX weekly price candlestick is not yet complete for this week, if stocks drop the next couple days to end the week, the MACD could conceivably print neggie d this week. You will have to wait for the week to end and check it Friday night. In other words, when she rolls over now, she may not come up for another price high. The drop coming may be every bit as swift as the February/March and early June pullbacks. 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.