I find this long term chart of the Nasdaq Index with Fibonacci extension levels applied, to be quite illuminating. For me it puts things into a helpful perspective.
By no means am I a "perma-bear" but I find this chart helps me to be honest with myself. Especially if I'm wanting to put money to work in this environment.
Prices have extended well beyond previous year's moves and have reached those magical fib extension levels of 1.618 and 1.78.
You may not agree with the method of analysis, the method of I've applied the fibs, or whatever....but I think most technical analysts could agree that these levels of extension often coincide with significant reversals. I'm not "talkin up my book" here, as so many seem to do on these forums, etc. Just some food for thought, and take it for what it is worth - just another opinion.
The big question now is where does a bottom form? Fortunately price, volume , sentiment, etc. will provide the appropriate clues at that time.
By no means am I a "perma-bear" but I find this chart helps me to be honest with myself. Especially if I'm wanting to put money to work in this environment.
Prices have extended well beyond previous year's moves and have reached those magical fib extension levels of 1.618 and 1.78.
You may not agree with the method of analysis, the method of I've applied the fibs, or whatever....but I think most technical analysts could agree that these levels of extension often coincide with significant reversals. I'm not "talkin up my book" here, as so many seem to do on these forums, etc. Just some food for thought, and take it for what it is worth - just another opinion.
The big question now is where does a bottom form? Fortunately price, volume , sentiment, etc. will provide the appropriate clues at that time.