The real Bull Market is in the Wings…
Since the ” Great Adjustment of August 5th” was completed, we have seen as expected, market players moving back into the chip/software base. That is ok as they are the base of the market, it is just that those sectors are overvalued.
Consequently, one can trade along with this flow until the Nasdaq 100 reaches the 19,500 level. We are watching the RUT / NDQ ratio for the signal of when to branch out into the real bull market where the small cap real economy applicators take hold. It may be close. See chart here. What jumps out in the ratio is:
- Ratio bottomed om July 10 at 0.0990
- Ratio rose to July at 0.1195
- Ratio declined to today August 13 at 0.1102
The Real Bull Market will be triggered when this ratio RUT / NDQ takes out the July 30 high.
Leave a Reply