Trend Meets Resistance

Since I have no idea what the market will do, I’ll defer to the market itself to tell me what it wants to do.  Right now, I think the most important chart is the NDX and the NASDAQ.  Both are in a clear downtrend but testing the upper end of the channels.  At the same time, they are hitting resistance.  If the indexes can manage to break out at these levels, I think a move back to January highs could be a possibility. 

However, when trend meets resistance, a change in the short term trend is usually in the cards.  That would imply a move back down to the bottom of the channel.  So I’m still stumped although I’m still leaning ever so slightly to the negative side.

Ndx_trend_meets_support_050605

4 thoughts on “Trend Meets Resistance”

  1. Thanks for this read mate. Well, this is my first visit to your blog! But I admire the precious time and effort you put into it, especially into interesting articles you share here!

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