NDX Setting Up for a Short Term Reversal
Posted on June 22nd, 2009 by
Mojo
Even though we never got a good signal to enter long on Google (GOOG) I’ve continued to watch the other techs and especially the Nasdaq 100 (NDX). Right now we are sitting just above the reversal zone on a minor ambush. See below:
More aggresive or bullish traders will enter now but I’m going to wait a bit and look for a breakout on the 60 min chart. Check the forum thread and I will do my best to update you.
Mojo
PS – Futures are only up +2 (YM) after hours so I’ll be watching these as well. If we get a smallish gap down Tuesday morning I may enter with a small pilot position.
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I did a put vertical yesterday afternoon on the NDX. Yesterdays downward move was way overdone.
The NDX, like most indexes, is mean reverting (except in wild times like last Fall).