Posted Thursday May 8, 2014
We are three years out from NASD tops in 2008 and 2011. Recall that we have been looking for a top in this tiome period. The large cap stocks are much stronger and show no signs of topping yet.
2008 NDX
Then the markets topped rather than bottomed in the Fall of 2007. An apparent Wave One bottomed in April 2008 and then rose, keeping positive hopes alive. It took until September for things to really fall apart.
2011
The pattern in 2011 as completely different. Then a low was made in the Fall of 2010 and high in May 2011. The June dip was a warning and in August things fell completely apart.
2014 So Far
So far this year looks more like 2011. a low occurred this past fall and a high was registered in March.
MACD has already rolled over in the lower panel.
Facebook, Price Line, Amazon, Cisco
CSCO topped earlier this year, I left out Google as it has split and does not show much history though it is down hard. We cannot know when a reall breakdown will take place but money is leaving the NASD arena in favor of teh large cap stocks.
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