hobo4000

IXIC Testing Resistance/Weekly Ideas

Short
TVC:IXIC   NASDAQ Composite Index
It looks like the IXIC might be making itself a new downward trend. Possible bearish flag after the initial selloff over the last few weeks. This week I will be looking for the IXIC to break up through the downward trend line and then the 13610 resistance line. If it fails the trend line , I think we will have more of a gradual downward trend, but if it fails 13610 and double tops, that could mean a large fast movement downward. This time it may drag the SPX /DIA down with it.

On the downside we have some protection at 12610. Whether we do or don't test either resistance level , if it finds support here, this could indicate a strong bullish reversal. However I think that to be unlikely given the valuation of the market today and the necessity of a correction to maintain reasonable valuations in the tech sector. Unfortunately, the rest of the market will probably get caught in the crossfire.

I am also watching the SPX for a probable normal dip along its trading trendline. Looking for some possible short plays there.


Looking for a possible bear PCS on INTC this week as it tests previous resistance line for support in rising wedge pattern...


Another possible bear PCS on AGI this week or early next as it shows a bearish flag in an overall downward trend while showing overbought on the Stoch . Will probably look for a MACD crossover before entering into the position. This will be especially effective if it tests and fails the downward trendline this or next week.


Also looking for entry on a PCS for BK after failing $47 and a bearish crossover in the Stoch and one possibly forming on the MACD .


Looking for a similar play on ED after possibly failing resistance for 3rd time while showing overbought in Stoch with a bearish crossover.


Everything of course seems to be dependent on the TNX so keep an eye out for more panic selling with rising rates.













Comments

It is in a downtrend channel, and time is running out for it to recover.

If there is significant move up in the next few days that takes it beyond 13,600 then there is hope of recovering bullish momentum, but if that does not happen this index is likely to test the bottom of this channel at 12,000

Be very carefull
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hobo4000 s_proper
@s_proper, my thoughts exactly. The market is shook. I'm in mostly cash, everything is either too overvalued or too risky.
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s_proper hobo4000
@hobo4000,

Even more confirmation of down trend today, likely to see one more jump to about 13,100 and if there is no miracle to ignite a new rally, 12,000 is looking even more realistic.

If anyone wonders why we see such a drop for so long, it is likely that large investors and institutions are selling their long positions and it takes weeks or even months to do so.

Any bullish push upwards is sold in to as fast as they come.

Be very careful buying this dip until you see confirmation that this dip is actually over.
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hobo4000 s_proper
@s_proper, Check out some charts for 3/19, there seems to be a large rotation happening. Lots of charts have unusual high volume days, both red and green. KO, PG, PRU, NEE, WEC, DUK, and many more have large volume that day. Not really a big day in any one index either.
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