Watch the Nasdaq On December 1, 2016

My last post noted a possible SPX top. The wave count I illustrated was invalidated in the first five minutes of trading on 11/30/16.

The SPX went on to make a new marginal all-time high and subsequently declined in what looks very much like a Double Zigzag correction. This patter implies at least another marginal new high on 12/1/16.

The Nasdaq topped on 11/29/16 and has dropped in a very clear impulse wave. Also there is a very high probability that the Nasdaq on 11/29/16 had a Truncated 5th wave to complete a larger five wave pattern.

At the close on 11/30/16 the Nasdaq 15 minute RSI and MACD both had bullish divergences. There is a good chance the Nasdaq could have on 12/1/16 a three wave rally to most likely the .618 retracement area.

The perfect set up would be if either the SPX and/or the DJIA make marginal new all time highs on 12/1/16 that are not confirmed by the Nasdaq.

The minimum downside for the SPX, DJIA and Nasdaq is a retracement back to the 11/3/16 bottom. I will have more about this in a future post.

For now. WATCH THE NASDAQ!

Mark