Diary of a Financier

Topheavy: How SPX 2007 Is Haunting the NASDAQ 2012

In Capital Markets on Wed 5 Dec 2012 at 22:58

Not much else needs to be said here.  The S&P 500 (SPX) caught an early right shoulder on December 11, 2007, and although it tried to retrace part of that dark candle in the following week, those levels still have not been recovered–now a full 5 years later.

The technology-heavy NASDAQ (COMPQ) has followed a shockingly similar path in both its priceaction and technical indicators.  Shares of Apple (AAPL) closed -6.43% today, the company’s biggest single day market cap loss, which has cast it back into bear market territory.  That helped QQQ print a long, dark candlestick, which has it neatly aligned with SPY’s 2007 major H&S top analogue:

SPY 2007 v QQQ 2012 (daily)- major H&S top analogue.

SPY 2007 v QQQ 2012 (daily)- major H&S top analogue.

Naturally, the weekly fractals are neatly aligned too, as depicted here from cyclical trough to peak:

SPY 07 v QQQ 12 (weekly)

SPY 07 v QQQ 12 (weekly)

–Romeo

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  1. […] correction is due in 1q13. That includes historical precedents governing precious metals (2009), tech (2007), volatility (2011), the US Dollar (1996), and politicians (2008 & 2011). As noted […]

  2. […] need little more ammunition but this comparison I’ve been making between the SPX 2007 top and COMPQ 2012. Today’s QQQ is still aligned […]

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