I think it would take more than msft...but if it reverses, most likely the nasdaq futures are. It's amazing how in synch they trade some days. And if the nas futures are moving up, so are QCOM, KLAC, AMAT, BRCD, MERQ, SEBL and all the other momos that run on every move up lately on the futures.
It sure could start a chain reaction, I've seen the market reverse when msft hits important support and reverses more than once.
That's why that stock is always on my screen...
This test coming up this week on the NDX is such a major one I will be standing aside and watching, since I trade the NQS only and they move so fast. It could gap down, slam lower right at the open testing the sept lows (only 53 pts down on the NDX) and do a 2B reversal before 9:40, I've seen it before!
There was one day a few months ago where an important test of lows happened right at the open...Everyone was so busy going short on the break of support (and about to get trapped including myself!) that we missed the fact that it was doing a perfect 2B reversal right after that break of support and a swift move to the upside. It was memorable to say the least <g>
One person I know who got it right was booters, and he taught me quite the lesson. Instead of being impatient to get short in order not to miss the move down, he had seen the test coming was looking for the reversal and waited patiently for the confirmation of the upmove, and got a 40 point move while the rest of us were squeezed out on the way up and left with our heads spinning!
Have to think diabolically, all too often it's the end result <g>
And as far as the retest, everyone will be watching THE number. A higher low would be a healthier reversal, which more chance of holding further upside. So it could easily reverse up while everyone is still looking down waiting for the "full" retest... |
