Markets continue to steam ahead, and some stock indexes have already exceeded their April highs.
In a runaway market like this the lunar cycle patterns we use for our analysis have little or no room to work themselves out. But don’t worry, things will get back to normal, probably sooner rather than later.
Here is recent chart for the Nasdaq index (click for larger image):
Notice how the current rally is very similar to the February-April advance. In both cases we started out at the 2100 level, then had some brief hesitation near the 2250 and 2400 levels. And here we are again near the 2500 level.
The only difference is that now it took only 6 weeks to get there. This has been an upward crash.
So, what next?
We remain in Red Period, so I keep looking for some downside action to start.
We will get some consolidation phase eventually, and my current guess is it will take us down to the 2300-2350 level by November (see chart).
December could then produce another rally.
Stay tuned.
Danny
LunaticTrader Blog 