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BraVoCycles Newsletter
September 25, 2025
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Today, we will discuss NDX’s broadening top pattern in the context of existing cycle price projections.
On Tuesday, FED Chair Jerome Powell admitted that equity prices are “fairly highly valued!”
He also said that the September rate cut was a “risk management cut,” acknowledging weak hiring trends and potentially rising inflation, and the FED’s dual mandate. That should temper somewhat expectations of multiple rate cuts in the next several months.
NASDAQ 100 Broadening Top
We recently showed a long-term NDX Elliott Wave count matching the 20-week and 40-week cycle price projection targets, which I refer to as the blowoff targets.
The chart below illustrates how NDX can reach the blowoff targets via a megaphone (broadening top) pattern.
This rhymes nicely with both the cycle and Elliott Wave Theory analysis.
After catching February high and April low, I will try to guide subscribers, wave by wave, to the blowoff top.
A Teaching Moment – A Summary of Broadening Top (Megaphone) Pattern:
Definition: A broadening top, also known as a megaphone pattern, is a chart pattern in technical analysis where price action forms higher highs and lower lows, creating diverging trendlines that widen over time. It typically signals increasing volatility and market indecision.
Characteristics: The pattern consists of at least five minor reversals (two peaks and three troughs or vice versa), often appearing at market tops with bearish implications. Volume may increase as the pattern develops.
Implication: It reflects growing disagreement between buyers and sellers, with buyers pushing prices higher and sellers driving them lower, often preceding a significant decline. However, it can also offer short-term trading opportunities due to volatility.
Application: Traders use trendlines and momentum indicators (e.g., RSI) to identify entry/exit points, with a breakout below the lower trendline confirming a bearish move.
BraVoCycles on X
If you are interested in financial markets, you are missing a lot by not following me on X as I do not have enough canvas space in the newsletter to post all my research in it and which I try to post on X. Also, I often post important real-time updates between the newsletters.
On Tuesday morning (and on Sunday) we alerted Pro subscribers about a pending short-term correction.
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