Last week I wrote: “If this market continues higher, expect a peak next week at the latest and a major bottom/big buying opportunity around August 20th. Investors are advised to take some money off the table, there should be better/lower prices in the weeks ahead.”
Nothing really new to add here, equities appear to have topped; expect a drop into August, retest of the May/June low followed by a rally into late December, at least.
Cycles (see chart 1), intermarket analysis, analogs, seasonality, US presidential pre-election year model (see chart 2), completed TD sequential 9 sell setup in the NASDAQ 100 ( QQQ ETF), new Gann levels (see chart 3); all support a correction up to 10% from current levels. Let me remind that we are still in a bull market; after this correction is done, new all time highs are expected. For those interested in pattern analysis, it looks like a “reverse head and shoulders” formation since the January 2018 major high, where the right shoulder is missing. If so, once complete this is a very bullish pattern for the intermediate term.