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Friday, July 17, 2009

NDX tech update

The NDX weekly chart is charging and chasing to the 1600 level and should make the final top within 6-7 weeks. The correction was much flatter than I had thought. Next week we should see a minor pullback and short term traders can use that to jump on the train - I am not sure how much it may come down but it should be minor in nature and do not exceed the gap we made after Intel 1460-1500 and it should be over by the next weekend. Some volatility will be a constant factor within the earnings season since not all will have upbeat news but the overall bias is to buy weakness for now as the market will be rising to new highs the next weeks. The bull maipulators use all tricks to keep the momentum up to get more people jumping the bandwagon. Long term investors should starting selling their positions as we reach 1600 and unload with rising prices - important is to have cleared out all longs by end of August or first week of Sep. By mid sep we are due for some sharp sell offs as the green shoot propaganda will loose all momentum in Autumn.

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