The Bullish Percentage Index for NDX (BPNDX) has reached levels where shorts need to pay attention. At new lows for 2007, it's not quite as low as the 2006 number, but at 36 we are at reversal levels.
The COMP BPI is at the lowest level in three years.
Yes, we can go lower, but you have to ask yourself if it is worth panicking like the herd down here. Risk below 1987 for NDX is probably a very quick flush down to 1971 and 1965. The 200 dma is at 1946. But the way bonds are selling overnight, we might not get there. In conclusion, if short, you need to understand that we can get a very powerful rally any day.
This entry was posted
on Monday, November 26, 2007 at 11/26/2007 08:42:00 PM.
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