Strategy Central

[glennob]

GLENO

I think your call should turn out alright. The reasons I think today might be a short term buy is. Using the NDX:SPX 30 minute ratio chart at 12:30 ET was the low for the day, so it made a higher low the last hour where the NDX made a new low. Drawing a trend line on on the NDX:SPX ratio chart, Friday and Monday it broke it to the up side and the MACD went positive also.
Then we have the daily VIX, VXO, and VXN close above its bollinger band.
When we hit the low of the day, the put call ratio was very high.
Today also was a bradley date, which I trust least, but was part of the puzzle.
I'm looking at the possiblity of going up to the 1770 plus area. From there a more serious down turn. Also today we hit the 61.8% retace of the March 23rd rally.
Have a good night
Glenn