Saturday, March 28, 2009
On this 1 year chart of the NDX we see why the 1280 level has been resistance.....it's the 23.6% Fibonacci re-tracement. The NDX did a textbook double bottom and the neckline is 1280. When 1280 breaks, we'll be looking for next resistance at 1380-1425(38%fib). A way to play this could be with the QLD etf. IF and when we break 1280 will be a buy signal, using a close back below 1280 as a stop loss. We could also go sideways for a few more months.
Posted by Jeff York at 2:42 PM