This could actually go either way. Meaning, since last week’s bar
didn’t break above the prior week’s bar, we could see a short-term move
lower, or possibly even another sharp move higher.
However, as it stands right now, it’s our best educated guess we’ll see some weakness this week. What happens on the heels of a potential move lower, and the breadth of that move lower, will likely be the determining factor though.
You’ve heard us say on many prior occasions when the bars get longer and longer, something big is brewing, but it doesn’t always necessarily mean a reversal. However, should these markets simply keep running, all while the bars on the weekly charts get longer and longer, that’s definitely not going to be good for the extremely long-term landscape.
Conversely, should the markets breakdown, and more importantly last week’s low is taken out to the downside, that would clearly suggest we’re finally going to get the selloff we’ve been wanting for quite some time. I say that because the last thing Wall Street wants at this point is a runaway freight train to the upside.
With that, it’s probably best at this point to assume we’ll get some weakness this week, but it definitely doesn’t mean we’ll get the deep selloff we’ve been looking for. Not yet anyway. We’ll need to see how things play out by week’s end, because that’s going to tell us quite a bit when it’s all said and done.
The bottom line is if these markets pull back and the NASDAQ ends up making a new all-time high without first breaking below last week’s low, look out above. Conversely, if last week’s low actually does end up being breached at any point this week, or the NASDAQ closes somewhere around last week’s low, that’s going to suggest much more downside ahead.
However, as it stands right now, it’s our best educated guess we’ll see some weakness this week. What happens on the heels of a potential move lower, and the breadth of that move lower, will likely be the determining factor though.
You’ve heard us say on many prior occasions when the bars get longer and longer, something big is brewing, but it doesn’t always necessarily mean a reversal. However, should these markets simply keep running, all while the bars on the weekly charts get longer and longer, that’s definitely not going to be good for the extremely long-term landscape.
Conversely, should the markets breakdown, and more importantly last week’s low is taken out to the downside, that would clearly suggest we’re finally going to get the selloff we’ve been wanting for quite some time. I say that because the last thing Wall Street wants at this point is a runaway freight train to the upside.
With that, it’s probably best at this point to assume we’ll get some weakness this week, but it definitely doesn’t mean we’ll get the deep selloff we’ve been looking for. Not yet anyway. We’ll need to see how things play out by week’s end, because that’s going to tell us quite a bit when it’s all said and done.
The bottom line is if these markets pull back and the NASDAQ ends up making a new all-time high without first breaking below last week’s low, look out above. Conversely, if last week’s low actually does end up being breached at any point this week, or the NASDAQ closes somewhere around last week’s low, that’s going to suggest much more downside ahead.
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