noted march 15th (after FOMC?) that NDX made new highs but SPX and DJIA didn't.
shorted QQQ by selling 132.5/133.5 call spreads on march 16. will close when i see divergence again. also shorted MSFT as MSFT was failing to make higher highs while NDX was.
my assumption is that SPX/DJI will finish their ABC correction and start a 5 wave impulse. the end of wave 2 will indicate failure to make a lower low while NDX will just complete its ABC and make a lower low, hence having index divergence again
shorted QQQ by selling 132.5/133.5 call spreads on march 16. will close when i see divergence again. also shorted MSFT as MSFT was failing to make higher highs while NDX was.
my assumption is that SPX/DJI will finish their ABC correction and start a 5 wave impulse. the end of wave 2 will indicate failure to make a lower low while NDX will just complete its ABC and make a lower low, hence having index divergence again
Comment:
wrong chart above. please see below
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bageltokki
about MSFT
it can also be noted that while NDX made a higher high, SPX and DJIA both failed to make a higher high and stopped at a fib level