By Danny
The S&P 500 keeps going sideways while the Nasdaq is setting a string of new all time highs. The market is probably trying to make up its mind here, burst higher or start a correction? The first lunar red period of the year ended with a 191 point gain for the Nasdaq, see Performance. The cycle inversion we have been seeing last year just seems to continue. I will do a special post soon on why and when normal lunar cycles may return. Stay tuned.
Let's have a look at the current Nasdaq chart:
Courtesy of LunaticTrader.com |
The
Nasdaq has taken another swing higher, but warning signs remain. The
Earl (blue line) is turning down with a bearish divergence in place. The
slower Earl2 (orange line) has not done anything and still shows a top
in place. The MoM indicator is also turning back down after another
visit to the +8 zone. Not the kind of setup I want to buy, so I would
just stay patient here.
We are starting a new lunar green period, but if the cycle inversion carries on then that is not a plus. The LT wave for January suggests a peak near the 17th followed by increasing weakness for the remainder of the month. We will soon find out if that projection holds up.
We are starting a new lunar green period, but if the cycle inversion carries on then that is not a plus. The LT wave for January suggests a peak near the 17th followed by increasing weakness for the remainder of the month. We will soon find out if that projection holds up.
There
is no reason for instant panic, but the setup doesn't look great and I
am getting a lot of partial profits and sell signals in my reversal levels
method. So, I would be careful until the sky clears. Most indexes keep
bumping into overhead resistance and without a strong catalyst they will
probably not succeed to climb much further in the short term.
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This has been posted for Educational Purposes Only. Do your own work and consult with Professionals before making any investment decisions.
Past performance is not indicative of future results
Just submit your email address in the box on the Blog homepage
This has been posted for Educational Purposes Only. Do your own work and consult with Professionals before making any investment decisions.
Past performance is not indicative of future results
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