The Nasdaq 100 Index appears to be on a mission towards the 2223 to 2239 level which is a key level of resistance and is likely to cause some type of downside reaction.
We could get there as early as mid November 2010 or perhaps a bit later. I think it is clear at this point that the NDX is long overdue for some type of correction. It continues to squeeze higher and higher in ‘trickle up’ fashion similar to the sp500.
To be sure, the NDX has shown in the past that it is capable of rather significant downward corrective action. The action of the last 2 months has shown very little downside volatility. So keep a close watch on the 2223 to 2239 level on the NDX 100 as it could be an important trigger for a corrective sell.
Assuming 2223 to 2239 is achieved on the NDX 100, then 2140 to 2150 would seem like an ideal minor support area and first target.
Tom,
Thanks for the update. I could be wrong but 90 day cycle is expected to top anytime soon in next few days (plus minus). Hve shorted FTSE at 5848..Let us see how it goes..Stop loss at 5916
I don’t think the short side is ready yet.. I see a pull back but not a real shorting opportunity yet..
see http://www.bestonlinetrades.com/20101103/nasdaq-100-index-likely-to-start-a-correction-2223-to-2239/
Well my theory of having the same bearish candle (hanging Man) on all four indexes and their ETF’s, which is unusual, did not work out today Another reason I thought that candle had more validity was that there was a rise in volume from the day before yesterday. However looking at today’s volume on all four ETF’s, todays volume was less than yesterday’s in spite of all the hoopla. Of course, CNBC cheerleaders were in full force today hyping a week old story about Obama considering compromise on the Bush tax cuts and pretending it was new. If we close up tomorrow then I will remove my shorts