(click image to view detailed TA)
Macro trend from NOV swing highs were broken last week with the gap move to 118. This was very bullish price action. The intermediate short story is no longer in play for now. Despite the 3pt drop Monday, a solid base being established at 112.50 as support now. A close below the previous days' lows would have been bearish and contradicted new long positions, but that didn't happen. The last few days have seen consolidation, which is normal after a strong rally. A bullish micro trend is emerging now that the upper channel of the previous bear trend has been broken (see chart).
Technical Analysis of NDX
Not much to say here other than it is perched on the 50dma after some consolidation. I'm expecting another move up now that consolidation is complete. This would also makes sense given RIMMs chart pattern. Although volume has been weak, this is setting us up for that move.
Quote of the Day
"There is only one side to the stock market; and it is not the bull side OR the bear side, but the RIGHT side".
- Jesse LivermoreCash Trade of the Day:
Long positions initiated. Enjoy the ride up...
Video of the Day
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