NQ pulls back to 50% retracement from COVID lows...

What's next? My longer-term modeling suggests we are going to experience a massive rally after the bottom sets up from this downtrend.

Far too many people are talking DOOM-n-GLOOM with regards to the speculative peak. My interpretation of this move is as follows:

Fed/Global Banks created excess capital over the past 8+ years
That capital has gone to work as SPECULATION over the past 5+ years.
These excesses pushed price levels higher and higher
The current revaluation process is a natural event that unwinds much of these excesses.

The end result is the US and global markets WILL find a bottom soon. That bottom will likely surprise many who shorted and are expecting a CRASH.

There is only one other time in history where the US/Global markets entered a period like this - post WWII when debt levels were high and a period of 15+ years was required to transition away from revaluation. After that process was complete, a period of extended credit creation prompted a big rally in the markets from the late 1960s to the peak in 2000.

My read on this market is the Fed is attempting to bring down inflation which is sparking fear and unwinding of leverage. This creates a revaluation event.

The bottom is very close right now. Pay attention to my research.