Monday, April 29, 2002
78% NDX gains unwound
Looks like Miss Cleo got it right. She had opined a back-kiss of the trend line off the lows followed by a decline.
The NDX low of 1228 is also a minor geometric support, but did produce some hefty volume and the day closed at 1246. How much more of a bounce will unfold in due time.
Price on the daily chart has not fully reached the upper ML before, which indicates general weakness (duh-gg, as if you haven't noticed). This decline off 1734, which itself was a 59% rally off the September lows, is quite near finished. Having hit 1228, 78% of those gains have been unwound and the NDX is left just 12.7% off the 1089 low.
I've also added an "experimental" NDX monthly chart (image no longer available), which uses ML drawn parallel to a very long term ML, originating at 287, the April 1992 low, which itself is on the ML from the 1990 low of 252. Don't know fully what to make of this, so it is curiosity value only for now.
Finally, today's action had a bully feel to it at the end. There are hints for at least a short term reversal in the 5m and 60m Andrews, as well as the chubby Equivolume bars on the QQQ 10m chart. Unfortunately, I can't do EV on the NDX itself, but interest in the QQQ should be reasonably reflective.
Labels: market-calls-dated
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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