Market doesn’t want to let go of the bearish sign, and it keeps surprising me every day. Where is the bottom? Some analysts say we are at the bottom and it’s time to buy, it could be a signal to investors, or perhaps, they are tricking people into buying more, so they can sell off again driving prices even lower.
What I see is bearish trend is evening out and we are getting into neutral trend, it’s a momentum thing it can’t change immediately it will take few weeks or months to start going up again. I’ll take neutral over bearish any time though.
Like I said earlier, market keeps surprising me over and over again. I started trading not long ago, so I did not expect these moves to continue for this long. But it’s all part of the trend. Market will go down and then it will go up, problem is catching when the change occurs.
NDX is at 6594, I thought it was going to break the 6900 barrier and go up. It’s been bearish all this time, perhaps the support is at 6200. Currently NDX fell more than it did in 2008 crash, but not as far as it fell back in 2000, the peak in 2018 looks remarkably similar to 2000 peak. See the picture below. In my opinion if it goes through 6200, I am starting buying puts, and entering more bear calls.
SPX support is most likely at 2500, if it goes below, then sell everything.
RUT is eerily following same pattern it did in 2008, support is at 1300.
I won’t be monitoring market next week, because I won’t have access to the internet, it’s going to be really tough. If market turns and starts to go up, it will be a much needed surprise.