The Long-Awaited NASDAQ High has Arrived

Stan Harley |


NASDAQ High Imminent

NASDAQ_Comp_6_24.jpg

The NASDAQ Composite chart above depicts a cyclical pattern that is worthy of examination. I have included the MACD (12,26,9) plot below for added clarity in depicting my cyclical turns. Note how the cyclical turns coincide with pivotal reversals in the MACD indicator. Note, too, the average time count in the high-to-high sequence: 40.8 trading days (TDs) between the 03-Jul-14 high on the left and the 27-Apr-15 high on the right – 39.8 TDs in reality, but 40.8 TDs with this small sample size. You get the point.  My 39.8 TD rhythm is readily apparent. The one year analysis indicates 43 TDs has been the longest high-to-high sequence. Presently at 40 TDs from the 27-Apr-15 high about all I can say is – we are there. It could possibly hold up into the end of this week which would make another 43 TD high-to-high sequence. But I don’t see this market holding up beyond this week.

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Long story short, I would absolutely not be long equities at this time juncture. It may well turn out my “June 26 – July 1st” turning point, which I had projected as a low, produces the high in the NASDAQ and the retest high for the DJIA /S&P/NYA. This intense media focus on Greece should start to fall apart by week’s end.  

 

Each month, Stan Harley publishes The Harley Market Letter, a newsletter that provides advanced technical analysis of stocks, bonds, and precious metals. This is the latest update to the Harley Market Letter for June. Want to learn more from acclaimed market analyst Stan Harley? Visit his site and subscribe to the full Harley Market Letter.  

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