THE DOT - if this turns orange or red be alert

Monday, October 12, 2009

NDX tech update

The expected rebound into the 6-12th Oct has fully realized and is now at the selling level for short positions. This is a low risk trade as one can manage it easily with a stop loss. It may last another week until the move starts getting momentum. Crucial will be to follow the Goldman stock as it should sell down even on a good news.
The evidence that the NDX does not climb to higher levels confirms the top as it was the leading Index and has lost the momentum. The cycle patter from low to high of all 2 weeks was aprox. 13 weeks - hence we are in the last 2 weeks of the current cycle. The count is in wave 5 making a severe correction highly probable as I expect at least a 10% down.

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I am a professional independent trader