GZ,
heading south? Here's a thought from trader Kit Webster,
The Nasdaq is about to hit what I call a vacuum - an extensive amount of price action containing no structural support. If the Nasdaq breaches recent lows, there is theoretically nothing to stop it until below 3000.
Let?s pause for some reflection. The Nasdaq has come up so far, so fast, that even huge amounts of retracement can be considered "normal." Remember that a normal, every day retracement of a move, noted by everyone from Dow to Gann to Elliott is one third to one half of the original move. Depending on how you count it, and rounding to make it easy, the Nasdaq went from about 1300 to about 5100, or 3800 points. Half of 3800 is 1900, which when added to 1300 gives you 3200. The Nasdaq has to get below 3200 before the retracement is anything unusual, statistically.
Stay tuned!<g>
Regards,
nextrade! |
