Troy,
I analyze about 180 charts each night, and with the NDX, there was trend-line resistance near Nasdaq 5000, and you saw that reflected yesterday, when at one point it (the Nasdaq) was down about 100 points on the day.
Yes, usually the round numbers are not all that significant, but sometimes they do coincide with serious technical resistance points. Take Dow 1,000 for example and check your history to see just how long and how many times it tried to penetrate the 1,000 level before finally breaking decisively through that level in 1982. Then check your history on Dow 100, and see how long it took to break through that level in the early 1900's. Now (and it is no coincidence in my opinion), the Dow is starting to have some real trouble keeping it's head above the 10,000 level. If history rhymes once again, it could be quite a while before we see the 10,000 level left in the proverbial dust. But we shall have to wait for the "fullness of time" to see if history repeats/rhymes once again at another "one zero" level.
I am not always correct, but you may take me seriously sometimes. <g> Yogi |
