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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (51978)	4/16/2002 8:34:18 PM
From: ajtj99	Read Replies (1) \| Respond to of 99280

NDX at the close stopped at falling resistance line originating from the March high through the April 1 high. A gap over that line could allow the index run to about 1446, allowing us a .382 fib re-trace to about NDX 1400, which is where that falling line would be in a couple of days. Hey, that's where Max Pain is! Overhead resistance appears to be converging at the NDX 1488-1495 area, with the BB's and falling resistance line off the Jan highs through the March highs heading to that area. The close was also just above the middle BB and 20-day SMA. It did close above the 20-day EMA. Wow, the 50-day EMA is at NDX 1446, so that seems like an important number right now. If we get past NDX 1446, there is nothing but a whole of air above until the NDX 1488 area. Looking at the COMP, the 200-day SMA is at 1862 right now, and that is the location of the falling resistance line originating from the Jan high through the March high. This should provide some decent resistance. Above that, the upper BB's around the 1885 area may be another area of resistance. The gap from this morning could provide some support into the month of May, as I believe May Max Pain is around QQQ 34-35 right now. Way above we have the COMP 200-day EMA at 1946 right now and sloping down. If we got past the upper BB the gaps above at around 1906 might be a target with the 200-day EMA an ultimate target. From what I can see, by tomorrow morning 2/3rds of this move may be over with, and possibly a small re-trace to follow before the next move up. This setup may get us range bound for the next month until May Max Pain, when they can start taking us down strong. I'd say NDX 1400-1500 may be the range or "box" we could be in for a while, with the stretched box getting to NDX 1375-1530. FWIW, the line that stopped the COMP at 1722 is dropping about 100-points a month, projecting to around 1520 for June, but that's just for entertainment value.