NDX – market outlook

The expected decline started right away this week admit a ‘Merger Monday’. The leaked story on Sunday about an ugly stress test was an ideal trigger. After we had marked the daily 13’s for the NDX and SPX we have now entered the time frame for a steep correction.
Amazingly again exact the next trading day after Venus turns retrogade.
As you can see wave A up is confirmed now with the laps down and selling strength will be the motto for the next days as we need to drop around 10% roughly. A test of the 50 day MA at 1210 would mark a 50% retracement of the current rally. We can expect steeper losses for the SPX as the financial sector might get hit harder due to the stress test official results to be published early May should be a negative driver. Geithner might be forced to make an earlier announcement as the leaked information is really ugly but very much matches my expectations. The current earnings results of the banks are pointing into the wrong direction as they were cooked and huge mark ups to their toxic assets might have been what they call trading profits.

~ by behindthematrix on April 20, 2009.

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