THE DOT - if this turns orange or red be alert

Tuesday, July 20, 2010

NDX weekly update

NDX joins today all US indices by making a death cross as well. THe rally exactly to the 50 and 200 day MA is a classic as is the turnaround which leads to a sell off thereafter. So far we have produced a lower low and a lower high which confirms the overall bearish picture. The slightly disturbing fact is rather the ISE MA's are all in the lower 90ies which limits current losses going forward together with other sentiment indicators. I expect another decline to the 1700 level and likely even 1650 before a bigger rally should occur for a few weeks back to 1900 probably preparing the market for a crash like move. Around this WE very bearish astro patterns will deploy triggering a fast and steep sell off.

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I am a professional independent trader