Nasdaq Setting up for Rounded top
Been posting bearish charts for awhile and scaling out of the market. Very hard to fully bet against the Fed but it's to risky to not be hedged right now. Bounced off support today but I think we will visit the bottom of the rising channel - could revisit the February 2020 highs.
Market is setup for a perfect top:
-Debt ceiling + Delta variant concerns
-Parabolic for the past year
-Covid got new traders to enter the market (provide liquidity for Wallstreet to sell)
-Insiders selling
-Advance decline (markets being held up by big companies while majority bleed)
-High price to earnings valuations.
Top it off, there is a rounding top pattern in the works. I am no expect in distribution, but I am concerned at the number of people who started investing in the past year with no knowledge.
Market is setup for a perfect top:
-Debt ceiling + Delta variant concerns
-Parabolic for the past year
-Covid got new traders to enter the market (provide liquidity for Wallstreet to sell)
-Insiders selling
-Advance decline (markets being held up by big companies while majority bleed)
-High price to earnings valuations.
Top it off, there is a rounding top pattern in the works. I am no expect in distribution, but I am concerned at the number of people who started investing in the past year with no knowledge.
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