NDX technical update

On the left hand, the NDX hourly chart dropped to the point where the bailout rally started just the upper part of the gap and it might hold here for today. Since it gives the opportunity of being counted as a corrective wave of the upmove, which I doubt it is. At this level, it’s a 50% retracement of the upside crash, which was nothing but short covering. In any case, there are two ways to unfold wave 5 down. The likely one is a 5 wave count and this might be the wave 1 down count and a wave 2 up will bring us to the levels I mentioned earlier (the volume today is fairly low compared to the last days), back to 1000 SPX and 1400NDX – since we have quite some big option volumes to settle this Friday. If the gap holds for another hour, we might trade higher for the rest of today.

~ by behindthematrix on October 15, 2008.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: