Definition Of A Bull Market:
The Nasdaq is really making it a miserable summer for shorts thus far. In the Northeast, they must be feeling the heat double as the humidity is relentless. Tech is on a torrid move upward and below is the Nasdaq chart we posted in our 6/29 Technology Note, stating that the next 1000 points up or down would be determined with the break above or below the bear flag. Well, it is now approaching the measured move to 14500, and it may not stop there. Keep in mind that measured moves are just guidelines and often have investors selling winners prematurely. The Nasdaq has gone well past the measured move from the bullish ascending triangle pivot of 12250 (that started at the very round 11000 number) to the “expected” move of 13500 for example. This market is a grind higher and bulls that felt they were smart taking winners now have to make the decision if they want to pay up to get back in. This will take a well-deserved breather at some point but it is giving credence to the old adage, “time in the market beats timing the market.”