Wednesday, September 22, 2010
The SPX break out above 1130 is not a real one as was the 1040 break a fake out to the downside. Basically we have only reached the high of the left shoulder and within a few days around the 1150 markets should top out and drop at least 5-6 percent.In technical terms the NDX is more important til the midterm elections. NDX missed to make the 12 count yesterday but apple made the 11 which brings us on defcon level for longs but we need a bit more patience. aapl almost reached the 290 target while being in week 12 - both ndx and appl need the 12 and 13 count but only the 12 requires a higher closes above yesterdays highs. whenever that is in place we are on highest alert level for being out of the last longs and entering short positions. entering the final week of this quarter next week window dressing will be very intense as funds want to show good quarter this year to stop the outflow of money - both mutual and hedge funds with full support of the FED running POMO liquidity injections almost on daily basis now to keep markets up. ı expect next week to be the turning point or marking of the current top. for the SPX extreme high could be 1170 but ı doubt we go that high rather around 1150. NDX could make a wild high to the old at 2050 though which could trigger SPX to reach 1170 but from those levels correction will be steeper as 1070 SPX and 1900 NDX are the downside targets.
Posted by getagrip at 6:13 AM