THE DOT - if this turns orange or red be alert

Tuesday, June 23, 2009

NDX tech update

The NDX has a razor sharp performance in wave terms as we ended as expected the bigger wave 3 in 5 waves and have now entered wave bigger 4 down. The very likely target is around 1340 which is a 38 % retracement and should not exceed 1280 less likely.
After listening to the disgraceful comments by the talking heads about the golden cross ( they have no clue what they are talking about) - I share a general observation with you with a very high probability in daily terms approx. 2 months after a golden cross ( 50 crossing 200) a sharp pullback occurs toward the cross level. Happens to be around 1340 matching the retrac. level. After this correction we will see wave 5 up for the final target of this years upside sucker rally which should be 1580 -1600. Should be reached by August and you need to exit all longs then except for special situations which should be no more than 10% of your overall stock exposure.

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