NDX

Not likely, Russ. This is an expected 300 point oversold rally to be swiftly followed by a drop to Dow 11500. After that starts the inflation run away rally. Enjoy... but all who enter here abandon hope. Islander.

Not likely, Russ. This is an expected 300 point oversold rally to be swiftly followed by a drop to Dow 11500. After that starts the inflation run away rally. Enjoy... but all who enter here abandon hope.
Islander.

Are you sure? If the broker dealer index breaks it uptrendline from 1994 then the end of the world will start.
I would appreciate it if you would detail your reasons as to why you believe what you wrote.

...
Are you sure? If the broker dealer index breaks it uptrendline from 1994 then the end of the world will start.
I would appreciate it if you would detail your reasons as to why you believe what you wrote.

...

Speaking of the $XBD, something which I noticed in the daily chart is the central ambiguity of whether the move off the June '07 top is impulsive or corrective.

If impulsive down, then we have seen only three waves down (possibly still in formation), and more downside to go.

If corrective down, then A-B-C was completed at today's lows (symmetrical "A" and "B-C" lines).

I think this interpretative ambiguity -- which appears on many index charts -- is the key dividing line between bulls and bears.

Either way, $XBD appears ready to bounce; a move > 205 would negate the "impulsive" scenario.

http://stockcharts.com/c-sc/sc?s=$XBD&p=D&yr=2&mn=0&dy=0&i=p32275550584&a=127441809&r=7551.png

Edited by beta, 09 January 2008 - 06:31 PM.

... similarly on the NDX, the present structure would appear to be a wave "3," with a possible "4" up to the 200MA resistance @ 1989 (unless it gets above 2000). NDX 1990-2000 sets up an ideal short, with little risk.

Edited by beta, 09 January 2008 - 06:51 PM.