My post on 11/30/16 noted that the Nasdaq had completed five waves down with bullish momentum divergences and to expect a rally on 12/1/16.
On 12/1/16 the Nasdaq continued lower in an impulsive manner. Again it counts as a completed five wave pattern with bullish divergences.
Assuming the pattern is complete a three wave counter trend rally should develop on 12/2/16.
A .382 retrace is at 5301.40. A .618 retrace is at 5340.60.
The DJIA went up on 12/1/16 and is the most bullish index. There is a high probability the DJIA will make a new 2016 probably on 12/2/16.
If the Nasdaq has rallied in three waves to one of the resistance areas with the DJIA is at a new 2016 high it could be a great time to short stocks.
WATCH THE NASDAQ!
On 12/1/16 the Nasdaq continued lower in an impulsive manner. Again it counts as a completed five wave pattern with bullish divergences.
Assuming the pattern is complete a three wave counter trend rally should develop on 12/2/16.
A .382 retrace is at 5301.40. A .618 retrace is at 5340.60.
The DJIA went up on 12/1/16 and is the most bullish index. There is a high probability the DJIA will make a new 2016 probably on 12/2/16.
If the Nasdaq has rallied in three waves to one of the resistance areas with the DJIA is at a new 2016 high it could be a great time to short stocks.
WATCH THE NASDAQ!