Friday, November 26, 2010
NDX has completed the Seq 13 as well as of Wednesday on a green day 4 hence a corrective day 5-6 would be a regular reaction and the futures do confirm that so far. It is quite tricky these days but the B wave up is not finished yet as APPLE has still a bit upside scope. Same is true for the SPX and the VIX has not produced the one close below 18 yet we need to complete the 13 count. As on Sunday the 4 days joined war games between South Korea and USA starts exactly as Mars in Sagittarius squares the Jupiter Uranus Conjunction. That is a very dangerous constellation as uncontrolled eruption of violence or military confrontation is the energy lingering throughout the whole week. On top of that Uranus goes stationary on the 5th Dec which bring the whole into an even more dangerous level. The next 2 weeks will be full of negative tensions and any relief rally on Monday because nothing happened will be rather an opportunity to sell short as it will get rather worse and some violence is very likely. We can expect big volatility and wild market swings for the next 2 weeks which will mark a wave 4 low early to mid Dec. in general. The NDX though should make a different play as it will be the first to make a major top - have that in mind as a lot of expectations have been baked into the holiday shopping and the return of the consumer so even a good weekend shopping should not be overrated but could be the reason though for a relief rally on Monday. The reason is that consumers might feel overconfident for a few days as Mars squares Jupiter which means basically overacting or exaggerating - hence the chances for a good Black Friday weekend are high but does not reflect the real state of the economy. NDX should be sold between 2160 and 2200 and wave C down will produce a low close to 2000-40 region.
Posted by getagrip at 4:15 AM