[RT] NDX and SP - a couple of charts

["Gary Funck" <gary@xxxxxxxxxxxx>]

The QQQ's (NDX), after breaking the short-term downtrend line a week/two
ago, have traded steadily higher, but are now trading on the longer term
downtrend line stretching back to Sept-2000.  The NDX A/D oscilator shows a
high level of overbought, and there's a major gap to fill in the 33 area
(QQQ) with support in the 30-31 area. The SP has run also, but less so, and
has not hit the longer-term downtrend line yet.

At this point, the probabilities favor the short-side, but since it is
expiration week, and there has been a strong upward bias, a better plan
might be to fade early strength with a tight stop. A spike into the 36 area
wouldn't surprise me - and after that, a retest of the 31 area.

BTW, the "max pain" number on the QQQ October options is 31, according to
http://www.iqauto.com/cgi-bin/pain.pl. That's roughly -10% below the current
quote.

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Protect your servers with 128-bit SSL encryption! Grab your copy of VeriSign's FREE guide: "Securing Your Website for business" Get it Now!
http://us.click.yahoo.com/M.WTOC/m1FDAA/cosFAA/zMEolB/TM
---------------------------------------------------------------------~->

To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx

 

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/

Attachment: Description: "SPX_011012.gif"

Attachment: Description: "QQQ_011012.gif"