Wondering why the Nasdaq tumbled so hard since the start of May ? Why is this a multi year top for the Nasdaq ? Here is a post on April 30th to refresh your memory ! You can also view my video about this loooooong term kiss of death , of Judas that is !
Good morning Kids. I have news for you this morning ... the QQQQ (Nasdaq 1000) is overbought on the daily and weekly chart. No kidding this does not take rocket science.... even a 5 year old can see that !! But this is what a 5 year old cannot see : The weekly chart of the QQQQ's shows that each time you had three readings in a row above 70 on the RSI (Relative strength index) within a few months time frame, the Nasdaq 100 tanked more than 10% in the next few months and the RSI had fallen down to the mid 30's as shown by point (4)in the chart below. Where are at the third reading above 70 of these last few months, and the channel 3 looks also similar to the previous ones. I really wouldn't be surprised to see the QQQQ's break this channel 3 on the downside and fall towards $40. At that time the RSI reading should be near the mid 30's again which could provide the next buying opportunity.
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