Is the Party Over? History Says Yes

Name three things that don’t last long… 1. Dogs that chase cars 2. Kim Kardashian relationships 3. And Relative Strength Readings (RSI) above 70 for major, market indexes. We don’t have a dog that chases cars or know Kim K, so let’s talk about the NASDAQ. The index has been on the climb since breaking resistance at 12,250 once Wall Street had confidence that President Biden and House Speaker Keving McCarthey would reach agreement on the debt ceiling. One thousand points later, the NASDAQ’s RSI is 72.56. Rewinding the NASDAQ chart, the buying party could be ending. As you’ll see from the chart below, the last three times the index topped 70, a selloff followed. Two of the three downdrafts were extensive. It harkens back to an axion we wrote about last week, “Buy the hype, sell the news.” If trades take the overbought reading and hit the take profits button, there are two key levels of support that will tell how deep the cut could go. The first technical safety net is at 12,750 but the real test would be if the NASDAQ slipped back to 12,250, which is currently in the same neighborhood as the 50-day moving average. As long as the tech heavy index stays north of 12,250, which is where the NASDAQ stalled for most of 2023, the longer-term prospects should continue to favor upside. SECTOR WATCH In what could be another sign the markets could be destined for some weakness, SPDR S&P 500 ETF Trust (SPY) outperformed Invesco QQQ Trust (QQQ) last week. It’s been our experience that bulls tend to have the edge when the NASDAQ leads the way. Technology, small/regional banks, commodities like oil/gas and metals/mining made up the top 10 performing sectors/industries on our performance leaderboard. If markets show weakness, it is possible to see rotation in other sectors. SPDR S&P Metals and Mining ETF (XME) could be attractive on a dip with a stop loss if the exchange traded fund (ETF) closes below $44. STOCK WATCH As much as we like putting ideas here, we always trade in alignment with our opinion, and our opinion is that the NASDAQ is poised to take some off the top. Why buy something today that might be a little cheaper the next time we get together. Rich Meyers The post Is the Party Over? History Says Yes appeared first on Edge on the Street. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [How To Extract Profits From Uncertain Markets]( The news wants to scream “doom and gloom” about the current market. Conditions feel uncertain – that’s the prevailing sentiment. But guess what? There’s NEVER any real certainty in the market. Reveal how you can take advantage of this current market.[The #1 Strategy For Uncertain Market Conditions]( By clicking link you are subscribing to The Investing Ideas Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. [Privacy Policy/Disclosures]( [Is the Party Over? History Says Yes](?site= Name three things that don’t last long… 1. Dogs that chase cars 2. Kim Kardashian relationships 3. And Relative Strength Readings (RSI) above 70 for major, market indexes. We don’t have a dog that chases cars or know Kim K, so let’s talk about the NASDAQ. The index has been on the climb since breaking resistance at 12,250 once Wall Street had confidence that President Biden and House Speaker Keving McCarthey would reach agreement on the debt ceiling. One thousand points later, the NASDAQ’s RSI is 72.56. Rewinding the NASDAQ chart, the buying party could be ending. As you’ll see from the chart below, the last three times the index topped 70, a selloff followed. Two of the three downdrafts were extensive. It harkens back to an axion we wrote about last week, “Buy the hype, sell the news.” If trades take the overbought reading and hit the take profits button, there are two key levels of support that will tell how deep the cut could go. The first technical safety net is at 12,750 but the real test would be if the NASDAQ slipped back to 12,250, which is currently in the same neighborhood as the 50-day moving average. As long as the tech heavy index stays north of 12,250, which is where the NASDAQ stalled for most of 2023, the longer-term prospects should continue to favor upside. SECTOR WATCH In what could be another sign the markets could be destined for some weakness, SPDR S&P 500 ETF Trust (SPY) outperformed Invesco QQQ Trust (QQQ) last week. It’s been our experience that bulls tend to have the edge when the NASDAQ leads the way. Technology, small/regional banks, commodities like oil/gas and metals/mining made up the top 10 performing sectors/industries on our performance leaderboard. If markets show weakness, it is possible to see rotation in other sectors. SPDR S&P Metals and Mining ETF (XME) could be attractive on a dip with a stop loss if the exchange traded fund (ETF) closes below $44. STOCK WATCH As much as we like putting ideas here, we always trade in alignment with our opinion, and our opinion is that the NASDAQ is poised to take some off the top. Why buy something today that might be a little cheaper the next time we get together. Rich Meyers The post Is the Party Over? History Says Yes appeared first on Edge on the Street. [Continue Reading...](?site= [Is the Party Over? History Says Yes]( And, in case you missed it: - [Why Bitcoin Uses So Much Energy](?site= - [International Demand Explodes for Short-Term US Treasuries](?site= - [June 2023 Stock Considerations](?site= - [Stochastic Oscillator: 399 Years Of Test Data Reveals Surprises](?site= - [Morning Report: Mortgage spreads at 37-year highs](?site= - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [You Can’t Escape Inflation So Profit From It Here]( “Inflation is bad” – yeah we all get it. There’s nothing you can do to stop it though. If you can’t beat ‘em – join ‘em. That means learning to leverage inflation to build your wealth instead of devaluing it.[Claim Your Copy Of Our Research Report FREE]( By clicking this link you are subscribing to Conservative Investor News’s Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( - CLICK THE IMAGE BELOW FOR MORE INFORMATION - [i]( Good Investing! T. D. Thompson Founder & CEO [ProfitableInvestingTips.com]() ProfitableInvestingTips.com is an informational website for men and women who want to discover investing and trading products and strategies to educate themselves about the risks and benefits of investing and investing-related products. DISCLAIMER: Use of this Publisher's email, website and content, is subject to the Privacy Policy and Terms of Use published on Publisher's Website. Content marked as "sponsored" may be third party advertisements and are not endorsed or warranted by our staff or company. The content in our emails is for informational or entertainment use, and is not a substitute for professional advice. Always check with a qualified professional regarding investing and trading guidance. Be sure to do your own careful research before taking action based on anything you find in this content. If you no longer wish to receive our emails, click the link below: [Unsubscribe]( Net Wealth Consultants 6614 La Mora Drive Houston, Texas 77083 United States (888) 983-9123