Nasdaq Teetering:
I believe we are in the later innings of the selloff, and that is not going out on a limb after a more than 25% haircut in the early going Monday from its recent peak just above the very round 20000 number. This is not a garden variety type selloff but it did double in PRICE from the back-to-back doji candles during the last week of 2022 and first week of 2023 from the 10000 figure. One can see my pinned tweet and notice here on the WEEKLY chart at the depths this morning we essentially touched the rising 200 WEEK SMA. My belief is the current environment is very uncertain and trades should be done on a tactical basis. All of the ideas in today’s report will be looking for entries on a selloff and take profits with a 5-7% gains. The MONTHLY chart shows 3-month losing streaks are rare in the last decade, with just 3, and each of them appeared near the 50 MONTH SMA where we just came into contact. Each of those occurred at lows, with the exception of the 2022 which kept in close proximity to the secular line before taking off. Bulls can also take small solace that this touch of the 50-MONTH SMA is occurring for the first time after a breakout above the cup with handle, often an ideal entry point (notice the bearish gravestone doji candle that started the pattern in November 2021.