Looking for a bottom

As we suggested last week, the markets are retesting their recent bottoms.
With a few more lunar Red Period days to go, we may be looking at a good buying opportunity here.

Let’s have a look at the current chart for the Nasdaq Index (click for larger image):


The Nasdaq has abandoned its steep uptrend channel, and is now sitting near a major support level at 2750, which was last October’s peak. If this level doesn’t hold, then we are likely to fall back to 2600.
But with a lunar Green Period coming up later this week, I expect some buying to come to the market at the current levels. That would probably put us in the “sideways summer” I have been talking about.
If the market falls below 2600, then it could become really ugly. But that scenario is not on the table for now.

Good luck, Danny

By Dan

Author of LunaticTrader and Reversal Levels method. Stock market forecasts based on proprietary indicators, seasonal patterns and moon cycles.

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