This classic top pattern in Nasdaq forming
But will Nvidia spoil this picture?
This is another in my new series of mid-week Alerts that offer analysis of setups in a major market which offers lessons in how to keep abreast of the changing trends. I will select from individual shares, indexes, currencies, commodities, Gold/Silver, VIX and Bitcoin.
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Thursday 21 May
In my May 19 post I identified a high confidence ATH top on May 14 at the 29,680 mark. The give-away was the decline off the ATH was a clear five wave impulse. This was the chart I posted:
Lovely isn’t it? And on May 19 I marked the next move would likely be a corrective wave 2 up. Why? With the clue of a complete (or nearly so) five down there loomed the yawning gap above created when the third wave formed. A normal target for the rally was the wave 4 high with possibly slightly higher possibilities on its mission to try to close the gap. That is the usual pattern.
As I write just before today’s NY open this is the picture:
