Nasdaq ripe for correction?
The scenario depicted here may seem overly pessimistic, given that the leg C down to the long term channel of "sane" growth within the next 3-6 months can hardly be attributed to facts which are already known. However, the parabolic growth of tech stocks due to a long period of cheap money & exaggerated expectations regarding the impact of new technology, such as genetic programming, AI, metaverse or blockchain, created a FOMO climate, which - in my perception - strongly compares to the millenium frenzy we saw 1998-2001. So we may well find ourselves on the brink of decline, as scribbled in this chart.
Sure, the price action we observed in the past 4 months could just be yet another bull flag. If so, the current monthly candle should close above 14.000 points on Tuesday. Here is the support of the 300 days MA. If that support does not hold, the pessimistic scenario shown here is getting more evident. Let's see.
Sure, the price action we observed in the past 4 months could just be yet another bull flag. If so, the current monthly candle should close above 14.000 points on Tuesday. Here is the support of the 300 days MA. If that support does not hold, the pessimistic scenario shown here is getting more evident. Let's see.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.