I’ve been warning you about the Nasdaq 100 for weeks, and it’s looking like my predictions are coming true.
The Nasdaq is beyond stretched at this point, with RSI hovering near 85 and 90% of stocks trading above their 50-day moving average.
And, like I’ve been warning everyone, the rubber band looks like it’s going to snap and the market began going south just a few hours ago.
The question now is how far will the market go down?
Taking into consideration the grossly overbought levels of the RSI and the over extended nature of the market, we’re in desperate need of a cool-off before we can move ahead.
That doesn’t point to the market crashing, this simply means that the rubber band is slowly beginning to contract.
And I believe that the market will move higher again after the pullback for a couple of reasons: economic data has been phenomenal, GDP is humming along above at 2%, and unemployment is at 60-year lows.
So, I’m expecting a pullback on the 50-day moving average in the Nasdaq and a 5%-10% cool-off that’ll relieve a lot of pressure the market is feeling.
With that said, we have some real estate data that came out… and there’s no question that sector is slowing down.
I’m expecting the real estate sector to continue to come down, and I think it’ll cause blue chips to cool-off a bit in the first quarter of 2020.
I’m going to do it by following a comprehensive trading blueprint that I just put the finishing touches on. And on Tuesday, December 31 I’m going live to reveal all the details about it.
If you want to make doubling your portfolio part of your 2020 plans — click the button below.
It’ll register you for Tuesday’s event, where I’ll reveal my gameplan for doubling my portfolio over the next 12 months.