The decline on NDX on Friday was over 4% high to low intraday, and that was the most powerful one day decline that I’ve seen on an equity index in some years. I was talking on Thursday last week about the resistance trendlines on NDX and AMZN still being in doubt, and both were nicely clarified at Friday’s high. I also mentioned in that post that before the swing high that we are expecting here Stan and I would ideally like to see new all time highs made on all of SPX/ES, NDX/NQ and RUT/TF, and we saw all of those made before the reversal on Friday. This is a high quality candidate swing high here, but I’m just going to talk about NDX/NQ today as that has been driving the equity bull bus this year, and is the most important place to see high quality highs being made. (more…)
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The Importance of Trendlines
My apologies for the lack of posts so far this week. I’ve not been feeling great and it’s been a struggle just to keep up with my daily output for subscribers at theartofchart.net. Planning to resume these posts on a daily basis from this post today.
Last Friday NDX/NQ broke a strong resistance trendline, and that has opened up higher targets, not so much on NDX/NQ, though I have a longer term resistance trendline on NDX in the 6000 area that I will definitely be watching with great interest if reached. NDX 60min chart:
The Low Before The High?
NDX retraced today without hitting my channel resistance trendlines in the 5830 area. My working assumption is that NDX will test those levels tomorrow or Friday. NDX 60min chart
Partying Like It’s 1999
I didn’t get to the post in RTH today, so I thought I’d do something different today and have a close look at NDX (Nasdaq 100). This is worth doing as there can be little doubt which index has been driving the bull bus in recent months, so I’ve been looking it carefully and am taking the opportunity to share what I’m seeing there tonight, with my normal mainly SPX-centric view back for tomorrow’s post.
The shorter term setup here is a rising channel from the April low within a larger rising channel from the November ’16 lows. The two channel resistance trendlines are intersecting this week in the 5830 area and that is the obvious target for NDX this week.
Snapshots
Just a quick post as I’ve been fighting the clock all day today, with a review of the pattern setup on SPX/ES, NDX/NQ and RUT/TF with the break over resistance last night.
On SPX the short term pattern from 2352 is a decent rising wedge. Wedge support currently in the 2410 area and a 15min RSI 14 sell signal fixed in the last half hour today. At the close a possible small double top forming looking for 2405/6 area on a sustained break below 2411.83. SPX 15min chart:
