Seems like since the bottom in March of 2009 everyone—their neighbor, their barber, their Uber driver and their mother—has been trying to call a top in the markets and an impending correction. What if everyone of them is wrong? The Nasdaq 100 gives a clue as to where it might go if it just keeps running. This is not a prediction or a forecast, but take a look:
A very simple AB=CD pattern, where the move higher before the pullback is repeated after it stabilizes and turns again higher, projects the current leg could go as high as 4300. That is almost another 7% higher. What do the momentum indicators say? The RSI is bullish and rising and the MACD is rising and just crossed higher last Friday. These support more upside. The Bollinger® bands are also opening to the upside, giving more room higher.
A lot of the stories of why the market is overvalued or multiples are too high sound educated and well thought out. But they are just guesses. What is most important to making money in the market is to follow the price action and listen to what is says. I am paid to be reactive and manage risk not to predict. And right now the Nasdaq 100 says stay in the market.
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.