On 10/30/24 the Nasdaq Composite (IXIC) made a very lonely all-time high. It’s peak was not confirmed the other two main U.S. stock indices, S&P 500, and the Dow Industrial Average. The sub-index Nasdaq 100 also failed to reach a new high. And amazingly none of the “Magnificent Seven” stocks that have been the driving force for most of the two-year bull market failed to make new highs.
The daily IXIC chart courtesy of Trading View updates the action.
It’s possible the IXIC may have completed an Elliott wave Ending Diagonal Triangle (EDT) from the 08/05/24 bottom. The wave structure is not ideal as the presumed wave “four” bottom on 10/23/24 did not overlap the presumed wave “one” top made on 08/22/24. Even if the post 08/05/24 rally is not an EDT, the rising wedge has a decisive downside breakthrough.
Daily Stochastic, RSI, and MACD – Histogram have bearish divergences. Both Stochastic and MACD have bearish lines crosses. RSI has crossed below its moving average line.
The daily Nasdaq 52 – week high ($MAHQ) chart courtesy of Barchart.com illustrates internal momentum.
On 10/30/24 $MAHQ had a double bearish divergence vs. its July 2024 momentum peak. In most years this huge bearish divergence could signal a major peak. During most of 2024 the U.S. stock bulls have been very resilient. From February to June 2024 there were several $MAHQ bearish divergences, only to be overcome by a bullish momentum surge in July 2024.
Anything can happen, its possible there could be another bullish momentum surge. For the intermediate term there’s a good chance of a IXIC decline down to the early August bottom.
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