Color Scheme of the Charts to Differentiate the Various Wave Degrees is:
{ Supercycle / Cycle / Primary / Intermediate / Minor }
{By clicking on any chart, it will enlarge for ease of viewing. Commentary at the top of each chart is more easily read, also.}

Saturday, February 15, 2014

NASDAQ 100 Shows Negative Divergence after Parabolic Move

Nasdaq 100 is setting up nicely for a shorting opportunity on traditional technical analysis.  RSI is now diverging with price action after having been over bought for several weeks prior.  However, MACD is showing its highest high on this chart, which is more indicative of a wave 3 peak rather than a wave 5 peak, unless the wave 5 peak is an extended 5th.  Wave 5's usually are diverging with their prior wave 3 extreme.

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