Hey guys,
Well we have a difference of opinion here, although this is really a tough call! For the past two days we have had up days on icreasing volume which is usually bullish leading to a double top scenario on the NAZ.
However, we are overbought technically. And let's not forget about those divergences. Bearish divergences are much more accuarate than their bullsih counterparts. However, sometimes they take awhile to play out.
We have a hammer or doji (NDX or NAZ) with falling volatilty as well. I smell a fake out.
My best guess is ~30% retracement within the next few weeks, just enough to scare the nacent bulls, then we should resume the bull run.
If the earnings horizon does not improve and the CEO's choke on the "visibility" word, things could get ugly.
I still don't know why, but gaps get filled it is not if just when.
Happy New Year to all!
