NASDAQ topped out during July and November 2015 and has been in down trend ever since.
The following monthly and weekly chart of Nasdaq with Triple Trend Oscillator indicate an long consolidation/ bearish phase which can have serious implications for tech stocks worldwide.
Weekly charts :
1. The short and intermediate trend oscillator (TO) have fallen below zero and heading further downward with no signs of reversals or divergence.
2. The long term TO though above zero, is bearish.
3. The long and intermediate TO are still diverging, indicating further downside.
4. The current mini rally is just a pullback, to fall again to 4172 and further to 3950, which is the point of first divergence.
5. Nasdaq being in intermediate downtrend, all rallies will be sold into.
6. The trend will continue for an extended period which run in, for more than a year.
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| Nasdaq Weekly |
Monthly Charts :
1. The longer term chart (monthly/quarterly) are showing negative divergence, which have bearish implications for long term and one will have to take stock, a few months down the line.
2. Any improvements in the chart will be first reflected on the shorter TO, which will have to sustain to improve the long term outlook.
3. The monthly chart shows fresh trend transition, indicating the trend is likely to continue.
4. During 2002,2009 Nasdaq dipped to touch the monthly 200 EMA, indicating a severe bear market correction. Though we are not assuming a 7 year cycle, but 2016 is the 7th year from the last dip and the monthly 200 EMA stands at 2800 presently. If Nasdaq were to hit a bear phase, the possibility of hitting that level cannot be ruled out.
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| Nasdaq Monthly |
