Nasdaq nearing critical balanceIn November, we observed a Hagopian pattern - the market failed to reach the centerline despite the high probability of doing so (see weekly chart left). MACD-V is in divergence since then. A sign to be especially cautious.
This led to the current rally lasting more than ten days without a single close below a prior low. It seems the Plunge Protection Team may be at work.
In any case, we are now approaching the yellow centerline, the market’s point of balance. From there, the market will determine whether we push once more above the yellow centerline toward the white U-MLH, or turn downward, producing a second Hagopian and falling back toward the white centerline.
If the second scenario unfolds, the path toward significantly lower prices would be wide open.
Let’s see what we get for Christmas…
