With all respect to bull(s), I’m having doubts about the current rally.
NDX, the index I am watching, rallied from 1330 on Feb. 22 to a high over 1570, an 18% rally in little more than a couple of weeks. It looked spectacular…, maybe too much so. Further strength here seems to be a foregone conclusion, the only question is, how far it will all run.
On Friday NDX tested via triple top the lower 1560’s, but was repelled. This morning the index completed the retreat, and then rallied up to test the upper 1540’s, which served as the bottom for the Friday’s triple top attack. It bounced off that level, and then by noon retreated in 3 waves. Having done that, the index rallied impulsively into the high of 1573, only to pull pulled back hard into the close.
Today’s sharp rally may have been the 3 of 5 of 5 of 3 (running since Feb.28), which Onischka is describing in his Update:
translate.google.com
Wave 3 off a serious low has a funny quality: it is liable to turn out to be a ‘C’. This, of course, will be only proven if the market declines below the top of ‘1’ (1425 or so on Feb. 26 or 27). Last but not least, this big 3 or C wave is sporting distinct “wedginess” in its shape. Its support trendline is presently passing at 1550, only 3-4 points below the close. Another up swing tomorrow (a little 5 of 5 of 5 of 3 or C?) is likely to run into resistance at 1600 or a bit higher |
