The bloodbath has started.
Today the ugly face of Mr Market made its appearance.
From a Technical Analysis point of view we have entered in a downtrend period.
What happened today was, according to my opinion, the confirmation of the signs of the previous week.
The NDX was vulnerable and other indexes too.
I expect 5 waves down which should reach the purple zone that I have placed on the chart. And this will most probably be just be the beginning of a larger move.
The NDX violated 2 channels, one important and a smaller one as you can see at the chart.
As I mentioned at my VIX chart, Capital preservation is of major importance under current conditions.
The move down needs close follow up but its overall behavior looks very negative.
Short term momentum got extremely oversold and this could attract some speculators but it is the big picture that counts now.
For me each reaction (up move) should be an opportunity to decrease long positions or increase shorts.
Today the ugly face of Mr Market made its appearance.
From a Technical Analysis point of view we have entered in a downtrend period.
What happened today was, according to my opinion, the confirmation of the signs of the previous week.
The NDX was vulnerable and other indexes too.
I expect 5 waves down which should reach the purple zone that I have placed on the chart. And this will most probably be just be the beginning of a larger move.
The NDX violated 2 channels, one important and a smaller one as you can see at the chart.
As I mentioned at my VIX chart, Capital preservation is of major importance under current conditions.
The move down needs close follow up but its overall behavior looks very negative.
Short term momentum got extremely oversold and this could attract some speculators but it is the big picture that counts now.
For me each reaction (up move) should be an opportunity to decrease long positions or increase shorts.
For me that was just a reaction and nothing more.