We are getting our bounce as measured by the NDX as this is the index I have been keying in on. While the DOW and SPX is down off of bank (C, JPM), and HD weakness, NDX is up 40 to NDX 3,140. DOW down 200+ with clear technical break and SPX down 15 after registering lower intraday lows this morning. We got a lowere low booked in NDX at 3,023 before reversing..NDX intraday high NDX 3,183...
After our intraday low bounce yesterday of NDX 3,047 I stated in the archives that we would get this dead cat bounce to NDX 3,350 intraday and then head back down to NDX 2,750 area intraday before the basebuilding can begin going into November and 1st half of December...
Anytime you get external events as we had this morning shortly after running hard north out of the blocks reversals can and will happen as fighting in the Middle East and suicide terrorist activity in Yemeni port of Aden provide the backdrop for point of least resistance and that is down...
In light of this backdrop, NDX 3,350 intraday high may now be a lofty goal and we may turn right back down from here and any break of NDX 3,020 will accelerate the selling...
Events happening fast as NDX now breakeven...
EDIT: Back up +24
Ultimate target is NDX 2,750...
Best regards, J.T. |
