Stocks can go higher, but how much higher?
Updated
I will start by sharing a Twitter poll, which shows the sentiment we are seeing now. Most think we are going lower. Therefore, the market could go higher in the short term. twitter.com/charliebilello/status/1555281823344762881
I believe our target is the critical breakdown level that was never retested on the chart above. The maximum upside is the R3 Monthly Pivot + Yearly Pivot, which will most likely reject the price. Recession or no recession, the market has room to the upside for reasons different from what most people think. Won't get into these things here, as I want to keep this idea simply about the key targets I have for stocks.
For Nasdaq, it is hard to tell how high we will go as there is more than one target. For the S&P500 and the Russell below, the targets are very clear. However, for QQQ - NDX - NQ, more than one gap must be filled.
Based on the above, I expect the market to top about 6% higher from here, and potentially as much as 10% for the Nasdaq 100.
I believe our target is the critical breakdown level that was never retested on the chart above. The maximum upside is the R3 Monthly Pivot + Yearly Pivot, which will most likely reject the price. Recession or no recession, the market has room to the upside for reasons different from what most people think. Won't get into these things here, as I want to keep this idea simply about the key targets I have for stocks.
For Nasdaq, it is hard to tell how high we will go as there is more than one target. For the S&P500 and the Russell below, the targets are very clear. However, for QQQ - NDX - NQ, more than one gap must be filled.
Based on the above, I expect the market to top about 6% higher from here, and potentially as much as 10% for the Nasdaq 100.
Note
Many of my targets got hit on the last bounce, and then the market hit one of my targets to the downside. The market is probably aiming for the same area, where it could top again after forming the perfect bull trap. I am not sure whether the bull is back or not, but I can easily see the market going for the 4400 level before going down again. For now, I see nothing particularly bearish on the charts, and the melt-up could continue much longer than bears can stay solvent.
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