Kaja,
I was hoping too because I was long. Got stopped out at the open. My mentor John Murphy, sums it up...
NASDAQ 100 BREAKS TRENDLINE SUPPORT... The Nasdaq market took a decided turn for the worse today. Chart 6 shows the Nasdaq 100 Shares (QQQQ) breaking their rising trendline drawn under the August/November lows. That's not good (unless you're short). There's little doubt that the QQQQ is heading to lower levels. It's now a matter of how low. The blue horizontal lines represent percentage retracement levels from the August low to the December high. They help provide downside targets. The QQQQ is nearing a 38% retracement near 37. I doubt if that will hold. The next downside target would be a 50% retracement (see middle line) at 36. That would also be a test of the (red) 200-day moving average. That will be a VERY important test for the Nasdaq and the rest of the market. Volume rose today in the Nasdaq and on the big board as all the major stock indexes lost more ground. The Dow and the S&P 500 indexes are dangerously close to breaking some support levels of their own. They're being hurt by the falling QQQQ/S&P ratio line. That's why Nasdaq underperformance is never good for the market.
Regards,
frenchee
#board-4258 TSP Trend Timing: EFA (I), TLT (F), SPY (C), and VXF (S)
