{"id":142982,"date":"2019-03-04T17:43:54","date_gmt":"2019-03-04T22:43:54","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=142982"},"modified":"2019-03-04T17:43:54","modified_gmt":"2019-03-04T22:43:54","slug":"nasdaq-and-dow-two-spectrums-of-the-stock-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/03\/nasdaq-and-dow-two-spectrums-of-the-stock-market\/","title":{"rendered":"NASDAQ and DOW \u2013 Two Spectrum\u2019s of the Stock Market"},"content":{"rendered":"
March 4, 2019<\/div>
\r\n<\/div><\/div>

By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Our researchers believe the NQ and YM chart illustrates a very different dynamic which is currently at play in the US Stock Markets.\u00a0 The NQ, the Technology heavy NASDAQ futures, appears to have stalled near the 75% Fibonacci price retracement level whereas the YM, the Blue Chip heavy DOW futures, has already rallied past this level and is setting up a \u201cdouble top\u201d formation near 26268.\u00a0 It is our belief that the US Stock Markets are already nearing an intermediate top rotation price area and that traders need to actively protect their long trades\/profits right away.\u00a0 We believe a downside price rotation may take place very quickly over the next 5~10+ days and that the markets may rotate downward by a minimum of 4~6% in what we are calling a \u201cmomentum rotation setup\u201d.<\/p>\n

This first chart of the YM on a Weekly charting basis shows how dramatic the upside price move since December 24th<\/sup> has been\u00a0 It also shows the current high prices are very near to the high price levels near the end of November 2018\/early December 2018.\u00a0 We believe this \u201cintermediate double top\u201d formation will prompt a downside price rotation towards support near 24985 (or a bit lower).\u00a0 This represents a -5.5% price rotation and will likely frighten a few long traders.\u00a0 It will also embolden the shorts to start to power back into the markets expecting \u201cThis is IT! \u2013 the Big One\u201d.\u00a0 We believe this downside price rotation will become a very healthy moderate downside price swing that will revalue equity prices, re-establish support and prompt a new upside momentum move that may eventually break all-time highs later this year.\u00a0 In other words, we believe this rotation will be an excellent buying opportunity for skilled traders.\u00a0We show our volatility VIX setup forming here.<\/a><\/p>\n

\"\"<\/p>\n

 <\/p>\n

This next NQ, NASDAQ Futures, Weekly chart highlight the dramatic difference between the Blue Chips and the Technology sectors.\u00a0 Unlike the previous upside price swings, between 2016 to early 2018, where the Technology sector was the big gainer, this time it appears the Blue Chips and Mid-Caps are the strongest sectors in this recent move.<\/p>\n

We believe this divergence between active price levels may continue through most of 2019 as traders and investors appear to be concerned with technology and the capability of continued earnings\/growth going forward.\u00a0 It appears global investors are more likely to move capital into Blue Chips and Mid-Caps because of stronger earning capabilities, dividends and overall strength of price appreciation.<\/p>\n

If our prediction of a 4~6% downside price rotation come true, then we believe the Technology sector will likely result in a larger price rotation than the Blue Chips, Mid-Caps & S&P500 sectors.\u00a0 We believe this downside rotation is about to hit the markets currently as the NQ has stalled near the 75% Fibonacci retracement level and our proprietary modeling systems are suggesting a \u201cprice anomaly\u201d has setup in the NQ.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

\"\"<\/p>\n

Be prepared for a moderately large, -4~6%, downside price rotation over the next 5~15 days where support will likely be found near the -5 to -6% levels for the YM and ES.\u00a0 The NQ may fall a bit further towards 6295 ~ 6773 (-6% to -12%).\u00a0 We believe the weakness in the technology sector will be much greater than the Blue Chips and Mid-Caps.<\/p>\n

As skilled traders, we urge you to properly protect your open long positions and prepare for this price rotation.\u00a0 Our team has 53 years of experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.<\/p>\n

Chris Vermeulen
\nTechnical Traders Ltd.<\/p>\n

TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Our researchers believe the NQ and YM chart illustrates a very different dynamic which is currently at play in the US Stock Markets.\u00a0 The NQ, the Technology heavy NASDAQ futures, appears to have stalled near the 75% Fibonacci price retracement level whereas the YM, the Blue Chip heavy DOW futures, has already rallied […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-142982","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=142982"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142982\/revisions"}],"predecessor-version":[{"id":142983,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142982\/revisions\/142983"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=142982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=142982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=142982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}