As negatively as I’ve been positioned, I am covering some short sales today because the DeMark sequential indicators are flashing buy signals. The DeMark Sequential and Combo indicators are on "9 or 13 buys" across an array of timeframes and this often indicates a high probability long trade. While I’m far from bullish, I do think a strong bounce could be in the offing. Likewise, if a bounce doesn’t occur on these signals, it would confirm the downside thesis.
First, the NDX weekly will register a 9 buy this week.
Second, the NDX DeMark Daily Aggressive Combo registered a 13 yesterday.
Finally, the NDX 150 minute DeMark Sequential registered both a 9 and a 13 on the decline this morning.
Charts Courtesy Bloomberg
This article was first pusbilhed on September 26, 2010 (Click here for Full Story). The Chart Has been updated & as of this writing, the NDX is currently testing its Neckline!