Line up your monthly pivots with various fib and gap numbers. For NQ, we have a June monthly pivot at 1622.25 which is in the May 16th gap (1619.50/1628.50)and 38.2% retrace of the month. A push above opens the door to 1646.50, 50% and not too far from the 200 dma for NDX. For ES, keep an eye on the potential bullish cross of 5 dma and 10 day ema. It is encouraging that SPX bounced once again off 200 dma and 2003 trendline support with many non-believers in the media. Always helps. But remember that there are many investors who want to get out on any bounce as the same media has done a fairly decent job of terrorizing everyone. Nobody wants to be the fool they were in 2000, especially reporters and analysts. I still view the negative sentiment that is accompanying this correction as potentially short term bullish, or at the very least supportive. Just understand that being the minority in a trend is dangerous, unless we are at extremes (are we?). Don't stay married, trade it.
This is a whole new month starting, but we have critical data ahead of us this week, so mind your step.
This is a whole new month starting, but we have critical data ahead of us this week, so mind your step.
This entry was posted
on Wednesday, May 31, 2006 at 10:22 PM.
