Thursday, October 13, 2011

Non-confirmed Breakout Coming?

This has been a picture-perfect year of non-confirmed breakouts and breakdowns. NDX without SPX, DJT without DJI, etc, etc. You get the idea... These events have been reversal signals on every occurrence.

I think we are setting up for another one of these in the next few days. NDX will breakout above YH and SPX will not. That will mark the short-term top for this strong rally from Oct 4.

I will update here as it happens...

Update: Oct 13 @ 2:50 pm edt
At this pace it may just be few hours :)
GOOG may help the scenario...

Update #2: Oct 13 @ 4:15 pm edt
GOOG blew out earnings, thanks to that NQ is above YH. Let's see what cash market does tomorrow. Earnings call will be important. The scenario I discussed is playing out afterhours in futures, but I prefer cash market to confirm this non-confirmation of the NDX breakout tomorrow. My suspicion is about mid-day we would get the reversal I am looking for due to risk-off and profit taking into the weekend. Looking for ES to double top in 1214 - 16 area and sell-off from there. Let's see what happens...


  1. Hello, do you think is a good idea to short the market today?

  2. I am very sorry, but I do not give out trading recommendations on this site. At least not yet :)