the NDX closed below the 200 day MA for the first time in a year. the bull market campaign is over since late April and you can see on the left hand of the chart we dropped as well from the 2050 level to the 1750 level from June to July 2008 although it was a completely different ball game back then. this time we have a double penetration of the 1750 support and back then we had almost a golden cross around the top. one thing which might repeat though is that we will see a bounce from the 1750 level but neither the magnitude nor the time frame will be the same of the correction as we should head to the 1650-60 level within the next 3-5 weeks thereby 1660 is the 38.2 retracement level of the entire upmove.
Thursday, May 20, 2010
NDX weekly update
the NDX closed below the 200 day MA for the first time in a year. the bull market campaign is over since late April and you can see on the left hand of the chart we dropped as well from the 2050 level to the 1750 level from June to July 2008 although it was a completely different ball game back then. this time we have a double penetration of the 1750 support and back then we had almost a golden cross around the top. one thing which might repeat though is that we will see a bounce from the 1750 level but neither the magnitude nor the time frame will be the same of the correction as we should head to the 1650-60 level within the next 3-5 weeks thereby 1660 is the 38.2 retracement level of the entire upmove.
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