Has Nasdaq 100 Set its Rebound Peak? What Does This Mean for Projected Dec. Sell-off??
Has Nasdaq 100 Set its Rebound Peak? What Does This Mean for Projected Dec. Sell-off??
11/10/18 Weekly Re-Lay: Stock Indices provided a couple more levels of validation to the 4Q 2018 outlook. As part of the overall 2018 outlook, equities were projected to see a sharp sell-off in October, potentially dropping 10 – 15%, and then rebound into late-Nov./early-Dec. – when a multi-month top was/is expected…
Contrasting that, the Nasdaq 100 had/has 5-week & 10-week high-high Cycle Progressions that converged on Nov. 5 – 9 and projected a peak then. This divergence could simply be reinforcing the relative weakness of the tech sector… That could then trigger a new sell-off in December.”
Stocks remain above decisive cycle lows set in late-October, while turning their weekly trends down. That pattern projects a reactive 1 – 3 week bounce followed by a more devastating drop below those (late-Oct.) lows (with an intervening peak expected in late-Nov./early-Dec.). The Nasdaq 100 fulfilled upside price targets and cycles with its Nov. 8 peak and has since sold off – validating this scenario.
The action of late-Sept. – early-Nov. ’18 is powerfully corroborating what is expected for late-2018/early-2019 – with the next significant decline projected to take hold in Dec. ’18.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.