Another down week for most markets.
We have a couple more days of Red Period to go, so we stay cautious this week.
We have quite an interesting situation on some charts. Here is the Nasdaq Composite:
Despite the recent drop in prices, the Nasdaq remains in a steep narrow uptrend channel since last August.
If we can stay in that channel this week, then things will look good going into December.
But with some Red Period days remaining, there is a solid chance that we will drop out of this channel, and that would probably lead to some panic selling. A drop down to major support near 2350 (purple line in the chart) is easily possible. In that case I think the decline will stretch into the next Black Period (for the users of our software program).
So keep your eyes open, as this week could become a very important indication as to where the market wants to go next.
Be well, Danny
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This entry was posted on November 22, 2010 at 2:53 pm and is filed under Market Commentary.
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LunaticTrader
Outlook November 22
Posted by Danny on November 22, 2010
Another down week for most markets.
We have a couple more days of Red Period to go, so we stay cautious this week.
We have quite an interesting situation on some charts. Here is the Nasdaq Composite:
Despite the recent drop in prices, the Nasdaq remains in a steep narrow uptrend channel since last August.
If we can stay in that channel this week, then things will look good going into December.
But with some Red Period days remaining, there is a solid chance that we will drop out of this channel, and that would probably lead to some panic selling. A drop down to major support near 2350 (purple line in the chart) is easily possible. In that case I think the decline will stretch into the next Black Period (for the users of our software program).
So keep your eyes open, as this week could become a very important indication as to where the market wants to go next.
Be well, Danny
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This entry was posted on November 22, 2010 at 2:53 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.