02 March 2011
Market-> Unfinished Business?
We saw some sort of a bull fight yesterday and the Nasdaq and SPX tried hard to crack the barrier 1310-1317 on SPX and 2343 on NDX.
The daily chart still looks like that we will see another dip before the rally continues. This most likely will be solved today. I reckon we see this dip today with a rally on Friday. Having said this, as soon as SPX takes out 1317 and 1325, the bulls are in control and new highs just a matter of time. A dip today would be a great opportunity to enter a long position as the daily chart is forming a bottom and weekly chart has no sell signal.
The pre-market low in ES and NQ yesterday could be sufficient to shape the W in 30 minute chart. So it is not a given or necessary to dip today. Yesterdays POST showed the short term oversold conditions. Either way, we should see a rally soon.
Nasdaq Composite 60 minute
NYSE Tick
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Advance-Decliner
Up-/Down Volume
Summary:
The 5-10 EMA and 20 SMA gave a sell signal in Daily Chart and is approaching oversold levels too.
The intermediate trend is still up according to 13/34 EMA rule in weekly chart.
A drop towards SPX 1296 or 1292/ NDX 2308-2310 followed by a strong bounce would form a W shape bottom in 30 minute chart
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