The old rural saying "Sell in May, and go away" should be taken into account in 2020 again! This often correct advice seems to be the pronounced rhythm of the Americans concerning the delivery of their tax declaration until March 31. The pending additional charges of the IRS make the tax payers sell a part of their stocks in May to settle their tax liabilities.
For the NASDAQ-100 and the Nasdaq Composite now GUNNER24 is putting out that even fresh alltime-highs are possible in further course of May/into early-June before a some months long correction is expected to start. The correction course depends on the way this now started last upswing of the rally extends.
A strong final exhaustion into perhaps higher 11-yearlong bull market highs should result in a profound and "long-lasting" deep correction. In case of a lower bull market high compared to the February 2020 alltime-highs the correction over the summer months likely will be a more moderate one.
As the main conclusion of the last public analysis of the NASDAQ-100 - "Business as usual as the bull seems to be back" on April 19th - we could already bullishly state that serious backtest of the unusually attractive upmagnet gap resistance starting at 9355 up to 9635 pts can be expected:
Then the market fired uber-bullish weekly close, what in the final consequence should lead to the rapid backtest and even the complete gap fill of the 9355-9635 upmagnet but also of the GUNNER24 Lower Line of 2nd double arc backtest magnet within the longlasting weekly Low/High GUNNER24 Up Setups which starts measuring to the upside at major higher bull market low, printed over the Xmas days of the year 2018.
We next process the latest findings. Therefore again this very important prediction tool, placed over the current weekly chart...:
On track. This week candle is next strong rally continuation target as it closed near absolute highs and is a long-range candle what made fresh rally highs. The bull-signal candle is the 7th of the rally what with nearly absolute safety will lead to the work off of the lower line of 2nd alltime-high resistance an highly likely also to the major 9355-9635 gap upmagnet range within course of the rally weeks # 8 Fib number, resp. # 9 what means 9 – 1 = 8 Fib number.
Important Rule of W.D. Gann: "If the high price of the entire week is achieved on Friday, expect higher prices next week".
==> Expect 9355-9635 upmagnet backtest within next 10 trading days. These next 10 days form natural MAJOR time magnet out of # 1 // 2020 Low.
There and for then future important price/time magnet can be calculated and always whenever the price mets the time or the time factor mets price factor a change in trend is imminent. This usually very influencing price/time magnet should trigger a relative "mild" summer correction into 8000 to 8300 pts and below 1*1 natural backtest Gann Angle, now major 2020 support.
However, and this is actually crazy in the current economic situation and totally sick, IMHO, the leader of all stock markets could possibly reach a new alltime-highs by around the beginning of June. There is clear evidence of this.
Follow me in this theory..., we measure the course and steepness of the weekly rally since the # 1 // year's lows in a normal and above all very valid way as follows:
Setup isn´t adjusted correctly upwards actually, I like to show you where most important rally driver is anchored. The main reason why the NQ # is now back on fire is its recent behavior at the within setup naturally anchorable Rally Angle which anchor point is the middle of a GUNNER24 Square which in turn is marked with the circular image.
Rally week # 7-candle to the T, or totally exact tested the Rally Angle for the first time from above at its final low. This first test of the Rally Angle from above was a successful stuff what triggered the outcome that # 7-close fired the next bull market continuation signal on daily and weekly base.
What usually will lead to higher rally prices in course of the next week, at least... You recognize it by your own. The Rally Angle, now a confirmed important support out of # 1 // 2020 Low = stronger support cause it springs from a low on yearly base, is directed quite steeply upwards. It hardly goes steeper!
That means, we're now dealing with the infamous and rare V-shape recovery the US tech indexes perform in front of us. The V-shape recovery the media and some analysts discussed about behind the scenes a few weeks ago. A V-shape recovery means in the original sense that the previous downtrend is retraced very quickly to a very large extent. The EW analysts have this ominous threshold, which starts at a recovery rail of 90% of the previous (down-) wave.
GUNNER24 is currently showing us this ==> this rally EXACTLY can test back the existing alltime-high of 9763 pts = 100% or full recovery, before the current underway recovery-wave can be corrected again very, very deeply and for a long time!:
When adjusting the weekly up setup into the final highs of the rally week No. 5 Fib turn number the natural GUNNER24 Uptarget of the lower line of 1st double arc is in full sync and total price harmony to the reached alltime-high.
This top of # 5 Fib number is confirmed important and therefore natural mass movement trigger point cause this price triggered the so far one and only correction resp. pause of the rally. And cause out of # 5-top automatically springs the natural Blue Arc and natural first square line resistances = combined natural, therefore stronger Blue Arc/first square line resistance magnet, what finally and decisively is overcome by Friday close the next higher GUNNER24 Uptarget in (rally-) trend direction became officially activated.
And this is now pending GUNNER24 Lower Line of 1st double arc uptarget is in 100% sync to the prior cemented 9763 pts alltime-high (ATH)! And this can never be a coincidence that the first 5 week-range of the rally which is originally in agreement with the printed absolute year's low, as next important upside target forecasts the cemented 11-year bull market top price with such a pinpoint accuracy!
==> this described and calculated mathematical peculiarity together with the rare # 7-weekly double buy candle rather fully indicates that this rally cycle must reach the alltime-high resisatnce and therefore has to recover the 2020 downtrend by a 100%!
And afterwards - I have highlighted this in phat, bad dark-red in the chart above - a very mean Double Top in the monthly and weekly charts threatens, indicating that investors are seeking to obtain final profits from the bullish trend, perhaps followed by the next really ugly 2020 downcycle what easily could test back 7500 to 7000 pts in course of summer 2020.