In this week's podcast I discuss the Nasdaq 100 index, noting its inception in 1985 and the limited data available for analysis compared to other major indices like the S&P 500 and Dow Jones. I explain that the Nasdaq is likely completing a primary third wave, which should be followed by a steep corrective pattern. I observed muted market responses to significant news events, attributing this to algorithmic trading, index options expiration, and pre-determined market positions. I conclude that while the market shows potential for additional upside, the current topping process may indicate that the highs are in.
I also discussed the current market situation, emphasizing the need to consider both positive and negative scenarios. I highlighted the importance of monitoring the treasury market as a potential indicator of economic stability. I also analyzed recent market movements, considering various wave patterns and potential future directions. I concluded by discussing the possibility of a diagonal pattern and the implications for the market in the coming days.
I also discussed technical analysis of the stock market, focusing on potential wave patterns and key support levels. I emphasized that if the market breaks below 23,854, it would invalidate a wave 2 count, and warned traders to be prepared for selling pressure if that occurs. I also highlighted upcoming events that could impact the market, including NVIDIA's earnings and potential developments regarding tariffs and Iran. I advised traders to remain flexible and not count on any specific outcome, suggesting they should be prepared to adjust their positions based on market action.
Video Length: 01:01:13
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