NDX update

The Head and Shoulder formation worked perfectely well as we gapped below the neckline on Monday and even yesterdays rally could no close the gap hence we are trading lower towards the target zone of that formation which is 2180-2200 and should be reached til Friday likely. Also the relation between wave 1 and 3 should be at least 1.6 times the 120 points hence 190 from 2370 again confirming the 2180. That is rather a minimum and just the target of wave 3 down. Starting Monday we might see a brief  bounce up but that is a wave 4 preparing wave 5 down. Wave 5s target should be in the broader 2050-2100 zone we can fine tune that as soon as wave 4 is settled. In a bigger picture we have even far more to drop but that is something we will discuss along the way as the Nikkei is poised to test 6000 we are up for serious business on the downside globally.

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~ by behindthematrix on March 16, 2011.

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