NDX decided that there is no need to wait for SPX and DJX to make a new year high. Blowing all the stops and shorts are scrambling to cover. I have no idea if this was on the heels of all the good news from tech sector's Q2 reports, or simply the fact that tech leads all advances in the market lately. Leaders lead!
Above 2419 NDX high there is no resistance to speak of. Nasdaq 100 has not been at this level for over 10 yrs. You wanna pull a monthly chart up and draw some lines across 2000 and before? Be my guest... You could start putting some Fibonacci extensions on this move, but it is less likely that fibs will apply here. Another target could be the top of the channel from 2009 low. This would take us to 2650 or so before year end - another 9% up from here or 230 points. That also coincides with a box extension play. We were in a 230 point box from 2188 to 2418, and just broke it.
This train ain't gonna stop any time soon unless SPX and DJX derail it. It is in full steam mode. Do not fight this folks. Should SPX and DJX roll over, then all of this bet is off. Highly unlikely though, as the earnings are coming in very good, to say the least.
SPX and DJX are balking as I type, as NDX is pushing higher deliriously, and showing no refrain.
If SPX does not confirm NDX breakout, will this be concidered as a fake?? Only time will show...
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