Of the three major indexes we track: DOW, NASDAQ and the S&P 500, only the NASDAQ is in thin air.
What do I mean by thin air? So far the NASDAQ is the only index to make it past the 50% Fibonacci retracement levels as measured from the highs seen in 2007 and the lows that were made in March of this year.
Both the Dow and the S&P 500 have rallied strongly from their March lows but have not made it over the 50% retracement level.
Many professional traders - myself included - are looking at the NASDAQ's Fibonacci retracement as it represents a potentially key turning point for this year's market.
While not all the pieces are in place to go short or get out of long positions, one of the first clues is being put in place today by the Japanese candlestick charts.
In my new video, I share with you the NASDAQ retracement levels, as well as one of the key components that could lead to a potential reversal to the downside.
As always, our videos are free to watch and there is no need to register. If you have any comments on this video we encourage you to make them on our Trader's Blog.
Enjoy the video, all the best.
6 thoughts on “Is The NASDAQ Now In Thin Air?”
Thanks for your feedback.
Please check out this video as I think it will answer many of your questions.
All the best,
Adam, another great video. Thank you.
Question from a new member and new trader.
You talk about good money management practices and placing "tight stops". I would think this may be the most important part of placing orders, but the theory or process doesn't seem to be covered in any great detail on this site. Some detailed examples would be great. Perhaps the subject of another video?
What type of stops and where would you place "tight stops"
1. if long with COMP
2. if planning to short with PSQ
Thanks as always. Tim
Investors step aside. This is a job for swing traders.
Thanks for your video. And if you look to other markets, you can see that the Nasdaq is not alone to make a MACD divergence. Dow, SP500, and a bunch of others are on the verge of going back to their previous retracements. If one doesn't do shorting (like me), than he's better to be cash... like me!
I'll wait for the next leg up!
One question for you Adam: As a swing trader (few days to few weeks), should I consider the month-week TT (trade triangle), or week-day TT?
I'm talking about ETF trading.
Thanks for your input!
Thank you for your feedback and comment.
As you are a swing trader I would recommend the monthly and weekly strategy for trading ETFs.
All of the best,
Thanks again Adam.
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