The traditional NDX leading indicator is near its moment of truth. A clean right shoulder may forming if NDX stalls around 2783-2793, just about 1% more to go from current levels. If it does stall & breaks down, right shoulder target is about -8% from current.

For a proper bull continuation, NDX should lead the way, break through 2800 & stay above.

Its correlation with SPX is quite high but recently has been diverging, so I’ll be watching for more signs.

NDX has been underperforming versus the SPX for the last 1 year, so if this is a bull continuation, it should still have lots more to go.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s