There was a geomagnetic storm yesterday, the second one of this year.
(See what it means on our site: https://lunatictrader.com/?Geomagnetic_Storms )
The previous one came in January, just at the onset of a 10% decline in the markets.
We may be in for a similar scenario now. The recent rally is getting long in the tooth, and both Nasdaq and Dow Jones index are only just below overhead resistance from a long term trend line.
Here is the chart for Nasdaq:
At about 2450 there is strong resistance (11000 for the Dow Jones, 1200 for the S&P 500).
Any failure to break above these levels will probably lead to a sell-off that takes us below the uptrend line that started in early February. In that case we are likely to see the Nasdaq back at 2300 by the second half of April, when we will have a Full Moon period.
Stay tuned, Danny
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This entry was posted on April 6, 2010 at 4:48 pm and is filed under Market Commentary.
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LunaticTrader
Geomagnetic Storm
Posted by Danny on April 6, 2010
There was a geomagnetic storm yesterday, the second one of this year.
(See what it means on our site: https://lunatictrader.com/?Geomagnetic_Storms )
The previous one came in January, just at the onset of a 10% decline in the markets.
We may be in for a similar scenario now. The recent rally is getting long in the tooth, and both Nasdaq and Dow Jones index are only just below overhead resistance from a long term trend line.
Here is the chart for Nasdaq:
At about 2450 there is strong resistance (11000 for the Dow Jones, 1200 for the S&P 500).
Any failure to break above these levels will probably lead to a sell-off that takes us below the uptrend line that started in early February. In that case we are likely to see the Nasdaq back at 2300 by the second half of April, when we will have a Full Moon period.
Stay tuned, Danny
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This entry was posted on April 6, 2010 at 4:48 pm and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.