The NASDAQ has been making nearly daily new highs for about two weeks
while the DJI has not. Our study here shows that the NASDAQ could make
new highs for another 6-8 weeks without the DJI making any more. But this
would set up a bigger decline when the NASDAQ's price-uptrend is finally
violated. See the cases of early 2000, 2008 and 2015 below.
BEARISH
NASDAQ fails to confirm DJI New High (NC of NH) by making its own New High
April and August 1987 - DJI fell to lower band.
Oct 1988 - DJI fell to lower band.
April 1990 - DJI fell to 1.75% lower band. No Peerless Sell.
May 1991 - DJI fell to lower band.
April 1992 - DJI fell to lower band.
March1993 - DJI fell to 1.75% lower band and rising 65-dma No Peerless Sell.
May 1993 - DJI fell to 1.75% lower band and rising 65-dma No Peerless Sell.
Dec 1993 - DJI rose for another 5 weeks and then fell 11% from peak after Peerless Sell.
June 1994 - DJI fell to lower band.
Dec 1995 - DJI fell to lower band.
Mar 1996 - DJI fell to lower band.
Feb 1997 - DJI fell to lower band.
Mar 1997 - DJI fell to lower band.
May 1999 - DJI fell to lower band.
Aug 1999 - DJI fell to lower band.
March 2002 - DJI falls far below lower band.
March 2005 - DJI falls below lower band.
May 2006 - DJI falls to lower band.
Aug 2010 - DJI falls to lower band.
Dec 2011 - DJI falls below lower band
May 2012 - DJI falls to lower band
Oct 2012 - DJI falls to lower band
May 2013 - DJI falls to lower band
Dec 2013 - DJI falls below lower band
April 2014 - DJI fell to 1.75% lower band and rising 65-dma No Peerless Sell.
May 2014 - DJI fell only to 21-dma. No Peerless Sell.
July 2014 - DJI falls to lower band
NASDAQ makes new highs for 2 months after DJI peaks
but sells off significantly when it (NASDAQ) finally and breaks its price uptrend.
October 1997
Jan - March 2000. NASDAQ tops out 7 weeks after DJI but sells off significantly when it (NASDAQ)
breaks its uptrends. See chart below.
Oct 2007 NASDAQ tops out 2 weeks after DJI but sells off significantly when it (NASDAQ)
breaks its uptrends. See second chart below.
April - June 2008 NASDAQ tops out 6 weeks after DJI but sells off significantly when it (NASDAQ)
breaks its uptrends. See second chart below.
Aug 2008. NASDAQ tops out 2 weeks after DJI but soon begins steep decline.
Summer 2015 - NASDAQ tops out 8 weeks after DJI. See third chart below.
NASDAQ confirmed new highs do not prevent big sell-offs
Oct 1998
Summer 2001
BULLISH
NASDAQ confirms important B10 DJI breakout that starts new bull market.
1994-1995
NASDAQ confirms start of 2003-2007 bull market.
2003
NASDAQ fails to confirm DJI New Low (NC of NL) by making its own New Low.
Dec 1991 - DJI rises past upper band.
Aug 1992 - DJI rises almost to upper band.
Oct 1992 - DJI rises above upper band.
April 1996 - DJI rises to upper band.
May 1996 - DJI rises to upper band.
April 1997 - DJI rises above upper band.
June-August 2001 - DJI and NASDAQ crash. (See below)
Oct 2004 - DJI rises above upper band.
