The Most Bullish Outcome is Bearish
I don’t expect this is coming, but it would be the worst-case bearish scenario. It would all but guarantee the coming bear market will be on par with the 2000 bust, which would be really bad news for an economy where everyone’s pensions and retirement accounts are piled into the Nasdaq, the economy is financialized and the tech giants who would implode on the way down are a far larger slice of the economy. It’s almost a guaranteed depression.
Printing money won’t stop it either, it would instead spark wage and commodities inflation that further destroys equities in real terms. There’s no coming back from a blow-off top in a bubble.
COMPQ almost filled a gap today.
Nvidia earnings are next week. One way or the other, I expect that will top the market. A nice round figure of $600 looms if it ramps with the kind of mood in stocks seen the past couple of weeks. It also has a gap that ends at $306 that’s going to get filled when it finally breaks.