I think to many folks have missed the correlation between the Primary Indexes July momentum lows and the test, which created the price lows in Oct, although only slightly lower lows for some of the primary indexes. This was significant...
One should note the volume into the July lows which was IMO obvious accumulation followed by a double dip into Oct to round off.
The NASDAQ Composite Sept 01, 2000 Falling Resistance Line (semi-log scale) will be below 1380 Monday. The NazComp tested that line in Jan, Mar, Apr and May of this year. The question is, will the overbought conditions that will obviously come into to play next Monday/Tuesday coupled with that resistance line be enough to stall and turn back the advance enough to allow those Oct gaps to be filled before the 9/00 FRL becomes support?
That is a drop I would like to be able to benefit from, but I would not be betting on lower lows. I would also like to see lower 10Yr Treasury Yields for a few weeks for purely selfish reasons.
After 1220.69 fills, I will be staring at the elevator looking for up...(who knows, we may even see 1165.83 tagged.)
Regards,
LG
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