The Nasdaq Long-Term (Potential For Major Crash | ~70%)

26 янв. 2022 г.

When we look at the long-term chart for the NASDAQ Index (NDX), going back to 1985, we have only one major crash and that is between the year 2000 and 2003.

The NDX saw a 80%+ correction.
That is a drop of -83.49% in 944 days.

Here is the chart:

It took the index over 6,000 days to recover to its year 2000 All-Time High...
We believe a new correction will take place.

When we look closer at the monthly chart, multiple bearish signals we can appreciate...
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1) We can see the TD Sequential printing a perfect 9, telling us that the market is overextended. In the next few sessions doubt start to crip in.

2) In October we have a full green candlestick. The candle that follows with a #2 is a shooting star, a bearish candle.

3) The next candle is a Doji, signaling indecision in the market...

4) This months current candle, we have a full red/bearish candle which is moving below EMA10. Another red candle and we have full breakdown confirmation. Only a close above the Doji's high can cancel this signal out.

At the same time, we have a MACD trending bearish with a young bullish cross:

We have bearish divergence on the RSI since January 2018... The NDX is getting ready to drop.

The monthly candle closes in 5 days at which point we either get a rejection or confirmation based on candlestick reading.

Closing below 14,750 would be strongly bearish for this index.

We expect a very strong crash throughout all markets unless something critical happens on the positive side in the next few months.

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