Markets peaked almost exactly with the end of lunar Green Period, and are now dropping down again.
As we have been telling for weeks, don’t be too quick to get back in because a retest of the recent lows is quite likely.
Let’s take a look at the current chart for the Nasdaq Index (click for larger image):
Not much change in the situation. 2300 and next 2100 remain the support levels too watch.
With lunar Red Period lasting until mid September we better wait for buying opportunities towards the end of this period. The momentum indicator has also turned down, confirming the start of a down swing.
So we continue to be patient.
Good Luck, Danny
LunaticTrader 