The Nasdaq Will Soon Test New All-Time Highs, Then Suffer a Quick Correction

nasdaqGary Savage: Conditions are setting up for the Nasdaq 100 to hit new all-time highs soon, but a sharp pullback will likely follow.

There should be enough time in this daily cycle for the Nasdaq to complete a full test of the all-time highs at 5231 before the next drop down into a daily cycle low. Again, let me stress not to read anything into the impending correction. It’s just going to be a run of the mill correction. They tend to happen like clockwork about every 35-45 days.

For those clueless souls who assured me I was wrong about biotech, we have a very powerful bottoming pattern in play. Very similar to what happened in miners many months ago. The possible T-1 pattern target is around 305-310 before the biotech sector corrects along with the stock market. Then you will get another chance to buy. I suggest you don’t blow it a second time.

Nasdaq and Biotech

The PowerShares QQQ Trust ETF (NASDAQ:QQQ) rose $0.31 (+0.27%) to $115.98 per share in premarket trading Friday. The QQQ has gained 3.4% this year, versus a 6% rise in the benchmark S&P 500 in the same period.

QQQ-2016-08-05

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