Tuesday, August 24, 2010
The NDX broke as expected below the neckline of the head and shoulder with a gap which is a classic to the book pattern and is now running into the short term support in the 1760-80 zone which was our conservative target. The odds are favoring the more extreme target now by the way we reached the current one. The target derived from the head and shoulder pattern is 1675 and our overall target for this leg is 1650 and it should be reached quickly but we might see some tricky moves in between remember its mercury retrogade time. Expect a test of the gap once we reach the 1760 area likely tomorrow before the trend is picked up again 24h later approx. a confirmation for such an mini move will be a day below daily Bollingers today at 1763 that are random details though. Just do not get nervous once you see the countermove when it appears as that will generate a chance to sell if you are not fully positioned.
Posted by getagrip at 8:45 AM