Thursday, May 1, 2014

The Weekly Outlook - A Bull or Bear Be ~ $NDX

*****Looking at the current daily chart of the $NDX today I still fail to be convinced of a bullish position. First there is a downward open wedge pattern that needs to be reversed. Second there is a hesitation here along the top line of the trend-line and third, it's still out of the channel.

Finally the turning point is not until between 3640 - 3650 area and until then there are a few obstacles to overcome. Looking at today's close, history shows that it has reversed from this area numerous times and that the breakout is more difficult but of course not impossible.

The top current trend-line is important here as is the bottom channel line a continuation to the down along the trend-line could break the center support of the open wedge whereas the breakout up could support at least the testing of the 3635 area and further momentum back into the channel.

Regardless of a Bull or Bear be, don't allow your vision to be opaqued by your thinking. Watching the chart will instead clarify doubts one way or another and perhaps you'll also note the possibility of a right shoulder forming.

Happy Trading, Living and Dancing

The Weekly Outlook - $NDX Update

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1 comment:

Unknown said...

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