Sunday, September 28, 2008

$NDX - Somewhat cleaned up chart...



It does look like a bottom off of the trendlines, although bottoms are much stronger when they reach major time nodes like .5 or 1.00. This bottom is engineered, not natural, doesn't meet that criteria...

2 comments:

D said...

top at the 1.00 node?

mlytle said...

Hi d,
It's a little ambiguous, but that's how I saw it...looking back a few days you can see the most recent $SPX chart I posted shows a 1.00 node and then a decline started. Because the $SPX has all of the banks in it, I give that extra weight. This bottom we're sort of at now has been engineered and is not natural. I doubt it will hold...It's hard to say, we might get a rally here anyway because the end of September-early October period often does that. But the technicals I produce and the market fundamentals, which are beyond lousy, doesn't give the bulls much to work with..

Regards,
Mark L.