Just waiting

Markets pulled back significantly last week and we recorded a 126 points loss for Nasdaq in the recent lunar green period. With a new red period now starting stocks will probably remain under pressure. Let’s have a look at the Nasdaq chart (click image to enlarge it):


All my indicators point down and have further to fall before we can start looking for a tradeable bottom. Especially the slower Earl2 (orange line) is still very high. So I would just wait and see until the setup looks more favorable. A further drop to 4800 is not out of the question.
Could it go lower and fall below the August lows? Everything is possible, but I don’t think this market has topped out already. I didn’t see the kind of public enthusiasm and participation that normally marks major peaks.


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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