medium and short term outlook

The Nasdaq is down about 3.6% since the highs of last week. Thought the Nasdaq could make one last strong rally higher. It could but the correction that started from last week is starting to look like there could be some correction and consolidation for the coming months. A break below last week's low of 2705 could confirm such a pause trend. The long term trend remains bullish. For the short term, and possibly the medium term, a correction and consolidation of the 6 month rally off the late August lows is needed. Asset allocation remains on the low side of less than 30% or switch to all cash.