Bearish Engulfing reversal candle on the Nasdaq tonight. And if you look at a daily NDX chart, the rally stopped cold right at the 20 EMA. Everyone has been expecting it, so it makes sense when we were all loaded short this am they'd whip it right back up for one last jam job <vbg>
I really think a big pullback is in order here, and I see no reason whatsover to go long, except for bounces which then make great shorts as they hit the emas from underside.
The EMAs tell the tale IMO, the NDX 20EMA broke under the 50 EMA on the daily weeks ago, for the first time since SEPTEMBER 2000! and now all other indexes have followed suit. Take a look at the DOW daily, a rising wedge right to the 200 MA on the daily. A few points lower and it would have been a doji close. The ramp to keep it over 10K as a print close was hilarious, as at exactly 4 pm it was 9998.98. Only the settlement brought it over 10K.
I guess they really think 10k means something to the masses, what a joke <g>
But no matter what we think is going to happen, we have to respect the fact that the big boys are good at ramping a faltering market to fool the masses and whip us as hard as they can!
I'm enjoying the battle, and the games, and the immense education I'm getting from trading real $. No matter how long you use a simulator, it's nothing like the real pressure. |
