NDX update: bull flag forming?!

Although the SPX and INDU are in downwards sloping channels, the NDX has held very steady over the past 2 weeks and as you can see, price has range-raced most of the days (good luck trading that 😉 ). Combined with the possible alternate count that the recent low was only minor 2, and not Major 4, we must consider this pattern as a bull flag, which ideally targets NDX 4300.

click to enlarge

ndx update 09122014 - bull flag


Also note how the bollinger bands are squeezing: it telegraphs that a big move coming is to our screens soon. Given that it still is a bull market until proven otherwise, we have to give the benefit of the doubt to the bulls for now. However, IF price starts to break down below this range, with expanding bollinger bands, then something more bearish is afoot and we have to start to more seriously consider that a major market top was recently put in (in this case blue Primary III). But, the opposite (price breaks out to the upside with expanding bollinger bands) means the bull flag pattern is in play, which targets NDX 4300, and the recent top was only minute i of minor 3 with a shallow -horizontal- and thus very bullish minuet ii…

We should know soon enough, it will go one way or another…! (I know this is not much of a market prediction… but we always have to side on the err of caution when markets are at an inflection point!)



4 thoughts on “NDX update: bull flag forming?!

  1. Yup that’s what im seeing too. I’m a little concerned by some spikes in volume…I would prefer to see vol dying as opposed to staying even or even increasing (v hard to say since we just got into Sept which is when vol kicks back in).

    I put up a recent QQQ 30 min chart here…also sitting long QQQ as of Fri

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