Wednesday, October 27, 2010
As expected we tested the 200 week MA and turned south. The top is about to be finished within a week with the SPX being rather the underperformer. Over the weekend when Mars enters Sagitarius we might have a little spike testing that resistance once again as the NDX will push a bit higher but the triangle target was the 2125 area which we have reached and we are entering week 9 counts and NDX wil even make a 13 monthly and weekly count next week which is a very strong mark for a turn. My expectations was that the market would rally til elections but I expected a correction in betweeen which never really occured. Well that makes the market more vulnerable now as we have left all bearish sentiments behind and have entered bullish sentiment but not at exyteme level yet. as with elections we also get the QE2 announcement early Nov. we can expect a mini spike in the first week. Hence for now 1165-70 may stay as support in the first test followed by another test of the 1190-1200 level but right thereafter 2nd week Nov. a steeper correction should start to at least 1100-20.
Posted by getagrip at 9:26 AM