In my previous post regarding SPX and Nasdaq found here, I talked about the dangerous waters both indices were and the danger of a deep pullback or the start of a new downward move similar to the one we saw in the first quarter.
This is what I wrote mid-june on twitter….
Risk off coming to equities…..
— Alexandros Yfantis (@alexanderYf) June 14, 2018
Bulls were warned…We were calling for a 200 point drop in Nasdaq and a move at least towards 7000. Remember the chart? So what now that the pull back towards 7000 and towards 2700 has unfolded? Are we ready for the next leg up to new highs in indices? Unless the Dollar weakens… we should not be very optimistic… the longer the Dollar remains strong and in an uptrend, we should be waiting for something like this…
If however, the Dollar follows my expectations…..
…We should be expecting a hot summer with SPX above 2800. Technically as long as we are trading below 2775 trend will remain bearish. Nasdaq is most probably in a wave 4 unless it moves back above 7200.
Thank you for taking the time to catch up on my thinking.
