[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

[RT] nasdaq



PureBytes Links

Trading Reference Links

from a market letter

 

The NASDAQ 100 is now at a critical 5 year, 4 year, and 3 year Resistance/Support intersection where a
peak decision point is being reached and where a huge change will take place.
These are ALL intersecting at the SAME time and a Triangular Formation is now close to its apex.

*** Such apexes are very important in the market, as long term ones like this result in a Major breakout or a Major
breakdown when they move out the formation.

So ... let's now look at the chart below for the NASDAQ 100.

I will start with discussing the triangular formation made up of the dark red and dark blue trend lines.  The top red
one is a 5 year resistance line, that forms a triangle with the 3 year blue support line.  Note that he NASDAQ 100
has bounced off of the blue 3 year support 3 times. The third time was YESTERDAY.

This is no ordinary support, because if you look at the upper right corner of the chart, you see a Resistance/Support line
that goes to the exact Peak of the NASDAQ bubble "blow off" in 2000.  Yesterday, it bounced off of this support along
with the 3 year support ... see the double blue arrows.

Now ... here is what will happen ... The triangular formation comes to a "point" by the end of December.  Anytime between
now and then, the index will break through on one of the sides ... UP or DOWN.

If to the upside, a new powerful rally would develop.  If to the downside, a large drop in the market will occur.

If there was ever a point in the last 3 years that you wanted to be very cautious about the possibility of being
caught in a down draft ... this is it. 
"Extreme caution is warranted in the current market conditions."

Attachment: apex 100 special.jpg
Description: JPEG image

No virus found in this outgoing message.
Checked by AVG Anti-Virus.
Version: 7.0.344 / Virus Database: 267.12.3/141 - Release Date: 10/18/2005