@MebFaber That appears to be the Nasdaq Composite and not the Nasdaq 100. People want alpha vs the SP500. Nasdaq 100 is 60-80% tech companies depending on how you define"tech". New technology always has and always will be what drives the market higher.
"The market is all about psychology. Chart patterns are essentially maps of psychology, and these chart patterns will remain useful as long as human psychology remains as it is." - William J. O'Neil
This is how Jerome Powell should respond:
“President Trump continues to call for rate cuts and resort to name-calling—but let’s be clear: he has absolutely no understanding of where interest rates should be. Inflation remains well above our 2% target, tariffs are set to drive prices even higher, and the Federal Government is running $2 trillion deficits with no credible path to fiscal discipline. Meanwhile, inflation expectations are rising—and so are asset prices. The stock market is at an all-time high. So is gold. So is Bitcoin. These are not signals of an economy in need of monetary stimulus. The Federal Reserve is committed to restoring price stability—and we will begin raising interest rates next week to ensure that happens. Thank you for your attention to this matter.”
Ask yourself
1- Are these headlines enough to bring buyers rushing back in to get fully long?
or
2- Does it motivate reactive shorts to cover up a little and reactive buyers to jump on that short term blip?
Below a decl 5sma, I think odds favor #2
It could change but doesnt seem likely.
I am more interested in probable than possible when it comes to trend trading.
BREAKING: Tariffs have begun with 25% on Canada and Mexico, and 20% on China
In fact, tariffs could hit an average of 17.7% under Trump
This would be THE highest levels seen since the Great Depression
Let that sink in.
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