Heading Higher (6/12/19)

At the low on 6/3, the NASDAQ-100 was down 12% from the high on 4/25. Since that low, a strong rally has retraced 63% of the decline. With a retracement well over 50%, I think the market is likely headed to new highs.

The rally from the 6/5 low is likely to at least equal the magnitude of the rally from the December low to the April high. Depending on whether a point or percentage relationship is used, this suggests a target of 8892 – 9237 on the NDX.

Correction should be almost over (6/2/2019)

As of Friday’s lows, the Dow Industrials and S&P 500 were down 7% from the year’s highs, with the NASDAQ-100 down 9%. If this is still a correction within an ongoing bull market, the drop should end within another 3% from here. If it gets bigger than that, we would likely be headed below the 2018 lows.