The above screenshot is a snapshot of the recent price-action for the Nasdaq index on a weekly timeframe.  

As you can clearly see, we're currently on a weekly 8 of 9 in a TD Sell Set Up.  Coincidentally, the index is also on a Monthly 8 of 9 in a TD Sell Set Up.

It's very likely that these TD Sell Set Ups will complete their 9 candles and end as "Perfected" TD Sell Set Ups.  The question becomes, will they be significant and potentially mark an impending reversal in prices?

Despite the weekly Sell Series having already been perfected (check out our Education section or future blogs on perfected series), we remain bullish the indices through next week (week 9 of the series) and then likely lean cautious.

The daily TD Sell Set Up completed yesterday was ignored and prices have begun a clean TD Countdown phase on the daily chart for the Nasdaq.  There is a good chance this countdown phase continues through this week and next and gets close to its completion of 13 candles.

After the expected bullish week 9 of the weekly TD Sell Set Up Series....we feel there are likely 2 possible scenarios:

1) Prices ignore the completed Sell Series (has happened a lot in the run-up of prices the past couple years) and the weekly chart kicks off into a Countdown Phase strongly into July (Month 9 of the monthly Sell Series) and through the start of August.  What would follow is AT LEAST a small price pull-back/consolidation.

2) The weekly 9 ends up marking a medium-term top that doesn't get taken out until late fall/early winter.  This would entail the monthly still likely finishing as a perfected 9 in July and then 1-4 months of a small, low volaility pull-back in prices.

Still a little early to be confident but the rest of June/July should tell us a lot about prices for the Nasdaq for the rest of the year.


Disclaimer: This is not financial at your own risk.