Market Monitor Update, Monday, 04/20/2009 03:17:20 PM EDT
by Keene H. Little
HAVING TROUBLE PRINTING?
The SOX chart that I showed earlier is by no means the only one that I'm bearish on for the expectation for a new annual low. I pointed out on the BIX chart why I think it's pointing to a new low as well. The weekly NDX chart is a reminder of why I think price and time have played out almost to perfection in setting the market up for a reversal. I've been pointing to the week of April 12th as an important Fibonacci turn week based on the previous turns in this index. It's only a start but based on what I'm seeing so far I continue to like the setup for a new low for NDX. Clearly I like the setup for trading purposes and not the fact that we could get a new low. I know a lot of people who will not protect their portfolios for a possible downturn from here.
NDX weekly chart:
The downside projection for NDX is to 791 which is where the 5th wave would equal the 1st wave in the decline from October 2007. That's virtually right on top of the 2002 low near 795. That projection crosses the mid line of its parallel down-channel during the week of June 21st, one week after the price projection I'm getting off the SOX chart.