Dear Tech Stocks - You Are Causing Me Alarm

Out of the major indices, the Nasdaq 100 is the first to kick of the Bear Market Signal I use in my system.

As you can see the signal is not 100% perfect, there were 3 false alarms since 2007, although they were at points where the market could have gone south.

Looking at the Ichimoku Cloud, which I personally like as an indicator, the index has not passed through the bottom (yet) so there is some hope there.

Overall, we could be heading for a disaster. As the next major support level under here is 2015 @ 4750.

But with the Fed getting dovish and to be honest company earnings are still great with unemployment at a low, I believe this too shall pass.

But it is a percentage game of risk right now and it is 50/50. Is that a risk you want to take?

The last crash was a complete systemic failure. I do not see that happening yet.

Although my good friend @the_unwind reminds us that robotic algorithms are responsible for 80% of all volume on the US markets.
What money are they using?

Borrowed money.

If the market does crash hard it could be 1929 all over again.... all the Algo Trading on borrowed and leveraged money.

Sound familiar.

Anyway, enjoy your day