NDX adds evidence a larger correction is underway

With today’s ugly price action so far, the larger correction we’ve alluded to last week, see here, and even already a month ago: see here, is now taking hold. Note that neither the NYA nor the SPX have gone anywhere over that time frame: forewarned is forearmed and many of our members -including our trading…

NASDAQ Elliot Wave Update

Please find below our preferred Elliot wave count for the NASDAQ (aka $COMPQ). We prefer this index to be minute iii of minor 3 of intermediate iii of major 3 of Primary V. That’s a lot of three’s 😉 but the Fib-extensions for each wave degree overlap rather well. For example; the 200% extension of…

Russell 2000 in larger correction?

Yesterday we posted our preferred count, which tracked the market remarkable well until… well… today (we shouldn’t have posted it ;- ) ). Since we always let price dictate our POV we are therefore forced to change our count -by admitting one is wrong one can start being right- and today we take a look…

Are extremely overbought conditions good or bad?

Over the past 3 weeks the market has rallied unabated. The Russell 2000 (small caps) has rallied so much that the 5-day Relative Strength Index (RSI5) has reached over 95 and closed today at 97; that’s serious market strength! See chart below. We went back 20 years in time to see when such extreme readings…

Market breadth is getting very oversold again: can we expect another bounce or a meaningful rally soon?

Six weeks ago we observed market breadth (simple put the difference between the number of stocks advancing or declining on any given day; i.e. market breadth is negative when more stocks decline then advance and vice versa) was getting very oversold and forecasted either a bounce followed by lower prices or a meaningful rally was to…