Last month I wrote, "the NDX index was looking to make a big move to 1380 if the 1280 level broke". We hit 1379 yesterday. I missed it by 1 point!The 200 day moving average is above(white line) @1398 and that WILL stop this rally, for now. The 50 day and 200 day moving average is watched by every mutual fund manager, hedge fund, investor and trader. Money managers will be asking, "what direction is the 200 day pointing"..... DOWN? The normal pattern is, we test the 200 day and then pullback to test the 50 day(@1220 currently) for support. That's where the investors and traders, who missed the rally, will be looking to buy.
http://mpgtrading.blogspot.com/2009_03_01_archive.html
http://mpgtrading.blogspot.com/2009/04/ndx-breaks-resistance.html
