At 2:58 p.m. today, the NASDAQ 100 hit 14,724.44 on a retracement level of 67.73%, as discussed on June 2, 2023.
Stock chart courtesy of StockCharts.com.
Dow/S&P500/NASDAQ: Market Thrust
Don’t forget to keep an eye on Market Thrust for a change in market direction.
Stock charts courtesy of StockCharts.com.
Dow/S&P500/NASDAQ: Media Announces Bull Market
When you see all media outlets proclaiming a bull market has started, it is an indication that Market Makers have sold their entire inventory and sold short. Expect a decline to begin, just as it did during the last half of May in 2008.
Headlines from June 9, 2023
Reuters
Behold Wall Street’s new bull market, maybe
Wall Street Journal
Enters New Bull Market as Big Tech Lifts Indexes
Yahoo
Stocks rise, S&P 500 enters new bull market
AP News
The S&P 500 is in a bull market.
CNN
It’s official. We’re in a bull market
ABC News
The S&P 500 is in a bull market.
NASDAQ 100: May 19, 2008 vs June 7, 2023
As of June 7, 2023 the NASDAQ 100 structure is tracking with the NASDAQ 100 May 19, 2008 Fibonacci 61.8% retracement structure shown below. Using this model provides the expectation of another move above the 61.8% level before making a move to lower levels. Looking back to news events on May 19, 2008, there are some similarities in the standard reasons they use to describe market moves.
Blue chips stay buoyant (May 19, 2008)
Stock charts courtesy of StockCharts.com.
NASDAQ 100: 67.73% Retracement
On June 2, 2023 it was noted that the NASDAQ 100 structure is in the process of completing a 67.73% retracement pattern. In addition to this the NASDAQ 100 is also completing a 67.73% retracement pattern that is similar to what occurred in the Dow between January 11, 1973 and October 29, 1973.
Stock charts courtesy of StockCharts.com.
NASDAQ 100: 67.73% Retracement
On May 30, 2023 it was noted that the NASDAQ 100 structure is in the process of completing a 61.8% retracement pattern that is similar to what occurred in the Dow between August 25, 1987 and October 2, 1987. In addition to this the following charts from 2008 and 2023 provide some perspective on this move. Fibonacci is a guide. Detail calculations show the NASDAQ 100 conducted a 67.73% retracement from March 17, 2008 to June 5, 2008 before it started to decline. Today, a 67.73% move up from October 13, 2022 would provide a peak of 14,724.44 before a decline starts.
Stock charts courtesy of StockCharts.com.
Dow/NASDAQ100: $1 Trillion Companies
With NVIDIA being the latest to hit the $1 trillion valuation mark, it should be noted that there are companies, such as Apple, Microsoft, Alphabet, Amazon, Meta (Facebook) and Tesla that have faced declines after reaching their $1 trillion valuation point. The following history provides some perspective on this.
August 2, 2018 – Apple is now a $1 trillion company
August 2, 2018 – $50.216
January 3, 2019 – $34.67
Declined 30.95%
September 4, 2018 – Amazon becomes second trillion-dollar Company in U.S.
September 4, 2018 – $101.97
December 24, 2018 – $67.19
Declined 34.10%
April 25, 2019 – Microsoft is now a $1 trillion company
April 25, 2019 – $126.18
June 3, 2019 – $117.51
Declined 6.87%
January 16, 2020 – Google parent Alphabet is now a $1 trillion company
January 16, 2020 – $72.50
March 23, 2020 – $52.70
Declined 27.31%
June 28, 2021 – Facebook (Meta) has become a $1 trillion company
June 28, 2021 – $355.64
November 3, 2022 – $88.91
Declined 75%
October 26, 2021 – Tesla is now worth more than $1 trillion
October 26, 2021 – $339.47
January 6, 2022 – $113.06
Declined 66.6%
Dow/NASDAQ100: 61.8% Retracement
The November 22, 2021 to May 30, 2023 NASDAQ 100 structure is in the process of completing a 61.8% retracement pattern that is similar to what occurred in the Dow between August 25, 1987 and October 2, 1987.
Stock charts courtesy of StockCharts.com.
NASDAQ/Dow/SP500: Artificial Intelligence bubble
Dot Com Bubble Wall Street Documentary
December 2, 2018
Today you can substitute “Dot Com bubble” with “Artificial Intelligence bubble”.
NASDAQ/Dow: 2023 vs 1930
The development of parabolic structures is progressing. An Engrbytrade™ model representation of parabolic structures provides a comparison between the 1913 – 1933 Dow structure and 1993 – 2023 Dow structure. This parabolic structure also crosses over to the NASDAQ Composite, as shown below. A sharp decline in the NASDAQ is expected in 2023.
Stock charts courtesy of StockCharts.com.
Dow/NASDAQ: Dow Gap Below 34,617 Filled
Around 8:30 a.m. EST today the 5-minute Dow futures chart gap below 34,617, that was created at 2:00 p.m. on December 14, 2022, has been filled. The need to fill this gap was noted on January 28, 2023. One gap in the NASDAQ remains, as described on February 7, 2023.
S&P500/NASDAQ: Descending Triangle
Note that the S&P500 and NASDAQ 15-minute charts are in the process of forming a descending triangle. A decline is expected.
Dow/S&P500/NASDAQ: Intraday Gaps
The Dow/S&P500/NASDAQ are still expected to move higher. Algorithms are currently in the process of filling intraday gaps created during a volatile trading period after Jerome Powell’s speech on February 7, 2023.
Nasdaq: Key Words
As the Dow and S&P500 approach their structural peaks, the Nasdaq is also included in this group and is expected to fill a gap created in the 1-hour futures chart between August 19, 2022 and August 21, 2022 with a move above 13,247. Algorithms programmed with key words may trigger a sharp move upward and provide the means to fill gaps in the S&P500 and Nasdaq during, or after, Jerome Powell’s speech at 12:40 p.m. EST on Tuesday, February 7, 2023. This would align with a move of 8.5 trading days (+/- 1.5 trading days) after January 30, 2023 noted on February 1, 2023.
Stock chart courtesy of StockCharts.com.
Dow/S&P500/Nasdaq: Earnings
Nasdaq: Similar Retracement Structures
On January 19, 2023 it was observed that trading patterns in the Dow were similar within specific time frames from April 2022 and January 2023. A review of Nasdaq trades on January 20, 2023 revealed a retracement structure over the last three trading days is similar to five trading days between March 29, 2022 and April 4, 2022. The peak on March 29, 2022 occurred prior to the start of its decline going into April 2022.
Stock chart courtesy of StockCharts.com.
