Which Is It?
This is a strange trading environment, but part of the reason may be that the
charts are showing a tug-of-war going on in the indices.
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10:56:33
 Which way will it
go?
The Nasdaq 100 (NDX.X)
is sitting at an important inflection point. The index undercut the neckline
around 1767 of a head and shoulders in mid-June and has pulled back to an area
above, but close to the level of the neckline. Interestingly, the NDX.X is
tracing out a mini cup and handle over the past three weeks. Which will win out?
Speculation is all about observation. NDX.X is currently down 30 at 1792.16.
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Earlier this morning, we ran this post on an interesting looking chart in the
Nasdaq 100
(
NDX.X |
Quote |
Chart |
News |
PowerRating).
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Today Dave Landry in the TradersWire
Interactive chat room made a very salient point. As soon as
things either A) begin to be pooh-poohed by everyone or B) become
“obvious” — they tend to work in the case of A) and do just the
opposite in case B). Normal action for a breakdown from a head and shoulders is
a retracemet back to an area near the point of the breakdown/neckline. After
three down closes the index appears to be headed back to the downside, but not
so fast! The price activity for the month of June has traced out a mini cup and
handle. Smarter people than myself have taught me that things in the market are not
always pat, so I am going to sit tight for a confirmation as to the real
direction the NDX is going to take for the short-term.
Until tomorrow,
Duke