Techs continue their relentless march, with QQQQ now in plain sight of 61.8% projection August at 51.95, which is also the May 2001 high. Note how we are also bumping up against wedge resistance. Just a little more real bad news and maybe bulls get another push higher...Seriously,it has almost become surreal, as 83 oil all of a sudden is not a problem for the sector. Something has to give.
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The NDX chart is nearly identical, of course, but the closing candle gives us a clearer hanging man. A drop from here would confirm that candle's topping pattern (I know, we've been there before, but how many times can you cry wolf?...) We do have a VIX at 17, now 20% (!) away from the 10 dma. 10% is already an extreme, so this number is enough to make a contrarian salivate.
When every website, blog, TV channel, friend, mother, ex-wife tells you to keep buying and you feel all cozy about the markets, SELL IT. I'm definitely getting that vibe about techs if oil keeps a bid.
This entry was posted
on Thursday, September 27, 2007 at 9/27/2007 09:19:00 PM.
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