Wednesday, October 13, 2010
NDX has reached the May high level with a gap above the Bollinger today. the ultimate target deriving from this triangle pattern is around 2100-25 but ı still believe we will reach that with the next leg up as we should turn around from here within 24h. The SPX makes the 12 count today and should be able to make a 13 without any new highs. A correction of about 2 weeks maximum length should start but we also may have reached the same phase we had in the late rally from Feb to May as we traded in a 80 point range for 3 weeks back and forth after jumping above the Bolls around the top before we had the flash crash. If we do not make a severe correction now the consequences will be far worse with the real correction thereafter. since we entered the earnings season we can expect some volatility anyway as not all earnings might turn out to be glorifying for the bull camp.
Posted by getagrip at 10:11 AM