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Week 28 Market Roundup — Watch out for NASDAQ climatic run up
In my Week 27 market roundup posted last week, I mentioned NASDAQ is the leader among the 4 major indices and worth to monitor in case it become the one to lead the way down. This week NASDAQ continued to outperform the rest and close at all time high with climatic run up character on top of hitting the channel overbought, as shown below.
Whenever the market experiencing climatic run up on top of the channel overbought, we have to be very cautious as it is a red flag to warn for potential reaction on the way as shown in the past market history. Most of the time, the reaction is sharp and quick, together with a spike of the supply signature.
Below are top 12 multibaggers (TSLA, DOCU, ZM, DXCM, NVDA, SGEN, JD, REGN, ASML, AAPL, NTES, LRCX) from NASDAQ 100 within 1 year period. We can see that a lot of them also showing character of climatic run up.
Meanwhile, S&P 500 (ES) is still within the trading range from 2925–3230. Would the climatic run (followed by a…
