Before everyone starts wetting their pants here, look at a chart and notice the NDX 20-day SMA crossed the 50-day SMA late last week. There is nothing bullish about that. COMP has not crossed yet, but the NDX is just a bit ahead of the COMP here.
That may not be e-wave, but it's about as basic T/A as you can get. Many money managers see this and sell as fast as they can.
NDX 1600 should be it, and if we can't get past NDX 1581 tomorrow, that's a sure short (I think it may be surpassed). However, look back and notice since 2000, when the NDX 20-day has crossed over the 50-day from above, significant declines have happened from local tops 1-month earlier (April 2000, August 2000, September 2000, mid-Feb 2000, and mid-June 2000). Trade it, and profit from it.
Good luck, and you guys owe me a bud, if I drank that stuff <G>. |
