TA SPX/NDX: i was watching the weakness yesterday and then tabulated new lows in NASDAQ and NYSE plus the light volume and said we need more for sure
1431 is first key on SPX, that would be loss of support at breakout level, but 1413 is the biggy regards SPX, that goes and we could drop to below 1350 area.
For Nasdaq, it closed below a key support but 1775 is more important.
As always in the incredible move since July lows, we need a follow through.
But the biggest key, is wnenever NDX violates its 50ema and SPX violates its 20ema new money RUSHES in, like clock work, so we have had false signal after false signal of a breakdown.
NDX is just above its 50ema and SPX just above its 20 ema.
If market is going to turn we can NOT see a big volume rush of buying, which has been the case now for toooooo long.
i do not know if it is Fed manipulation or the fact there is so much liquidity out there.
But what i just wrote about those emas is the why this rally just goes on and on, just relentless buying whenever NDX 50ema is violated or SPX 20ema is violated.
It is this fact that is making this as long a rally without ANY meeningful correction for now almost 7 months.
The SPX 200ema is 1354 and the 200sma is 1335, for a meaningful correction SPX should drop to below 1350.
NDX 200ema is 1704 about and 200sma is 1660sma .
What 200ma should be hit to have a meaningful correction---the 200sma in my opinion.
Next week, IF we follow this relentless Bull pattern one will see NDX 20ema violated and SPX 50ema violated, and then huge buying arrives LIKE clockwork---which makes it all rather supicious---but the super computers may just be programmed to BUY BUY at those points, as the human element is being INTENTIONALLY being removed from from trading. G&S is now virtually all computerized. Max |
