NDX update

On the left hand of this weekly NDX chart you see a spike low before a final blow up which created the top that is pretty much the pattern we are facing now. We made the spike low and have gathered  back the lost ground in a mixed way though as the NDX is the weakest performer and the DOW the strongest as we have again sector rotation which is a classic part of a top building process. NDX broke above the old highs and just pulled back to that level and will retest the top once again at least. The point is what you do not see in this chart we are in a 10 year trading range channel and around the top is an important resistance level same is true for the Composite. I am quite confident that DOW and SPX will make moderate new highs before the top is finalized but the Tech sector should underperform from now on. That is something we have to follow closely as it will give a hint about the overall market condition. Very short term a small pullback is likely towards the 2280 level before the test of 2400 is due over the next weeks.


~ by behindthematrix on April 11, 2011.

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