Markets are bending, will they break?

Stocks made a significant dip last week and important support levels are giving way. The continuation of the rally that started in November is now questionable. Here is the current Nasdaq chart:

^COMP (Daily) 7_8_2015 - 3_24_2017

Nasdaq is trying to stay above the important 5800 support level. But all my indicators keep pointing down, showing a strong possibility for more downside action to come. Once the Earl (blue line) turns back up we will have a first indication of a tradeable bottom. So, better be patient here. The LT wave has been working like a Swiss clock so far this month. If it continues that way then we are likely to get a low today followed by several days rebound. Let’s see.

My more long term ELC indicator is still negative. I put it out on Twitter from time to time, this is the latest:

Once the ELC turns higher we can become more confident that a next leg higher is starting. Until that happens I wouldn’t be too aggressive and just wait. The vigor of any rebounds after down swings will also give us important clues.

By Dan

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


      1. please let me know if you sell the signal program or have subscribe on this signal.

Leave a comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: