“Not quite a false breakout on the $NDX, but good enough for a double top for me, with 3 clear divergences. Possibly adds weight to your argument that the $SPX rally is tired?” – writes Rob G from Australia
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A long-term Member looks at the Nasdaq
4 Comments
Alexander E.
Rob – close, but no cigar, not yet. Your chart is for Wed, today (Thu) NDX rallied, MACD-H ticked up, negating its divergence, Force Index rallied to a new high for the week. And the index itself reached a few cents below its peak.
IF it takes out that peak and closes lower, and IF MACD-H ticks down that day – THEN we’ll see a false breakout with a divergence
Larry H.
A viewpoint… Don’t know if you use Wyckoff Methodology… Appears to be a Change of Character with the drop last week… largest in this upswing. Climactic based on large Supply bar on 27th (only one larger in the last 3 months). Next move could be a continuation, a reversal or a trading range. Continuation on the breakthrough of last weeks high (13563) on Monday, breakdown on last Friday’s low ((12845) or a narrow trading range between the two. I think Alex and Kerry would say… be cautious. Next move is unknown. Doesn’t appear to overbought, nowhere near 3ATR, etc. Curious as to what others think. Stops in place!
Steve S.
I was also expecting more downside, at least ABC correction. But the overnight v1 trigger on Monday, with a strong follow-through next day pretty much negates the bearish story for now.