The NDX is in the final stage of building this top and selling is highly recommended for longs - one can even start to build a short position slowly at these levels as some indicators besides the price action do give signals and one segment which is barely represented here is coming to a top as well the XBD and BKX are about to reach tops. The strong resistance line matches the 200 week MA which can be recognised as the invincible barrier for the next 2-3 months. A pullback to the 1350 -1400 zone is the least we should expect in Q4 but within Q1-Q2 next year new lows are the real deal one should trade for. The tricky part as stated before is that even bulls are waiting for a correction soon but with a very limited scope no one sees the lows being tested or even new ones. Tough times are unfortunately ahead as the basic problems have not been solved and the Obama admin has proven the can not handle it but that is also true for almost all governments.
Tuesday, August 25, 2009
NDX - market update
The NDX is in the final stage of building this top and selling is highly recommended for longs - one can even start to build a short position slowly at these levels as some indicators besides the price action do give signals and one segment which is barely represented here is coming to a top as well the XBD and BKX are about to reach tops. The strong resistance line matches the 200 week MA which can be recognised as the invincible barrier for the next 2-3 months. A pullback to the 1350 -1400 zone is the least we should expect in Q4 but within Q1-Q2 next year new lows are the real deal one should trade for. The tricky part as stated before is that even bulls are waiting for a correction soon but with a very limited scope no one sees the lows being tested or even new ones. Tough times are unfortunately ahead as the basic problems have not been solved and the Obama admin has proven the can not handle it but that is also true for almost all governments.
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