Huh, in here! Huh, in here!
It’s gon’ get uglyyyyyyyyyy – in here!
Huh, in here! Huh, in here!
Higher volume selling kicked in today creating yet another distribution day on the major indices. I’ve heard some technicians hoping that the broader market would drag the NASDAQ higher, but I think the opposite is going to happen. The NASDAQ is once again headed for the bottom of its trend channel. I expect a bounce in that area, which I think is around 1975 right now. The Naz is looking really sick these days. For the first time since March 2003 my Multiple Moving Averages are looking bearish. The NASDAQ’s 50-day moving average will turn southward in a few days, unless we get a quick spike back above that line, and its OBV looks like death. I think it’s very possible that the Naz stays locked in that trend channel until it meets its 200-day moving average, which is currently at 1,870. But that’s too far away for me to think about now. In the short term I’ll keep shorting at the top of the channel and covering at the bottom.
Guess it goes w/out saying you’ve got your stops locked in on those shorts ….we’re getting to the point where squeezes start to happen.
I saw one of those “bullish percentage” indexes yesterday, and it had fallen off a cliff.
I’m actually sort of happy we’re finally getting a correction, means the market is back to making sense again. That October-February runup defied belief.
Lots of complacency, too. Yet you have to wonder if folks who lost a bunch from 2000-2003 might be quicker to lock in profits and create a sharper spike down. I think the 200dma comments are probably a good set-up for a long.