NASDAQ still leads the market
The strong rebounding wave is weakened but not yet turned back. Market was in a mix. Dow Jones dropped 0.13% last night, S&P up 0.12% and NASDAQ up 0.10%. After the announcement of CPI, PPI and Initial Claims, major economic indicators of mid months are all released and now we have to wait for indicators in the 4th week which are PCE and GDP.
But when we study the cycle, it is very interesting to see that this year, the market rose from January to August and went down. But it can be seen that the cycle of NASDAQ is different from AAPL. Even both of them are having retreat, but AAPL formed a Complex Double Bottom clinging downward and now waiting to break up. NASDAQ formed a Head & Shoulders of clinging downward, but later transformed to a Complexed Double Bottom as that of AAPL, that means AAPL is running ahead of NASDAQ, APPL leads NASDAQ and NASDAQ leads the market.