Lest we get so wrapped up in the imminent prospect of a major top, here’s a long-term chart of the Cubes to keep the bullish imagination supple. It projects a 20% rally to a 377.14 target that might have seemed absurd a year ago. At the moment, however, it looks like an odd-on bet to be achieved, notwithstanding the toppy look of the Dow Industrials and the S&P 500. Price action at the 271.04 midpoint pivot was choppy, but most of it occurred above the pivot, and that’s why the D target itself should be regarded as a good bet to be reached. If it were to occur by way of a spiky rally, I’d eagerly back up the truck to get short there. More likely in my estimation is that it will be a bumpy ride to the target if it is in fact achieved. A pullback first to p=271.04 would be widely heralded as the start of a bear market, but in the context of this chart, it would actually present an excellent ‘mechanical’ buying opportunity (with a stop-loss placed at 235.67).
QQQ – Nasdaq ETF (Last:314.14)