Close:
NDX erases two weeks of gains in just three sessions. With a solid bearish engulfing candle on the weekly chart, bulls must start wondering if they are not playing with fire. Support was found at 1954, 50% October/March. I expect a bounce from this level, but NQ 1992 level (NDX futures) should be resistance going forward. Note the confluence 50 weekly moving average and 50%.
Just to make matters worse, retail traders are bottom fishing by still loading up on equity long calls. ISE equity closes at 178, dangerous optimism in the face of deteriorating technicals (namely the loss of 1405 for SPX).
note: Blogger is still giving us problems, so no charts today. I will e-mail the NDX chart to the subscribers.
NDX erases two weeks of gains in just three sessions. With a solid bearish engulfing candle on the weekly chart, bulls must start wondering if they are not playing with fire. Support was found at 1954, 50% October/March. I expect a bounce from this level, but NQ 1992 level (NDX futures) should be resistance going forward. Note the confluence 50 weekly moving average and 50%.
Just to make matters worse, retail traders are bottom fishing by still loading up on equity long calls. ISE equity closes at 178, dangerous optimism in the face of deteriorating technicals (namely the loss of 1405 for SPX).
note: Blogger is still giving us problems, so no charts today. I will e-mail the NDX chart to the subscribers.
This entry was posted
on Wednesday, May 21, 2008 at 5/21/2008 04:21:00 PM.
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