A positive week with the Dow Jones up 238 points (+0.91%) and the Nasdaq up 108 points (+1.36%)
It appears the stock market continues to be on the “up, up and away” trajectory, but things might not be as simple as they appear to be. If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here
According to MarketWatch, this is the most important chart in the world today…..
What ‘the most important chart in the world’ says about stocks going forward
What the chart demonstrates, Adams wrote in a report, is the clear trend line that the Nasdaq has repeatedly bumped up against, representing “the upper limit to how high the Nasdaq can go” unless it breaks through it in a more definite fashion. Another line, in green on the chart, shows the lower limit to the index.
“This line has stopped the Nasdaq in its tracks several times over the last few years, and the broad market typically doesn’t make it very far without the tech-heavy Nasdaq leading the way,” Adams wrote. “The overhead resistance is also why it may be tough to see significant upside in the near term without the index breaking out above the line.”
I am not sure if I would classify the chart above as the “World’s Most Important”, but it does have quite a bit of significance associated with it.
First, this long-term compressing wedge will terminate on the Nasdaq (and some other indices) over the next few months. Suggesting that an important move is coming.
The last two times the variations of this wedge terminated, in 2011 and 2015, the stock market proceeded to correct. Not significantly, by any measure, but still. We should expect a similar move now as such rising wedges typically have a bearish connotation associated with it.
The biggest question we must answer here is whether or not this will be a simple correction, just as before, or will this be the beginning of a massive bear market that will send shock waves through this galaxy and the next.
We might have an answer to that question. If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here
