Something seems wrong with the chart of the Nasdaq NDX index.
My conjecture is that the chart of the NDX index is showing a Head & Shoulders or Triple Top formation. I could also make a case for a George Lindsay Three Peaks and Domed House chart formation. Stranger still is that the VIX is sitting at five year lows.
A low VIX can be argued implies a rising stock market. Since the middle of 2011 the VIX has been falling, while the Nasdaq NDX has been rising.
My initial conjecture is for a drop in the NDX to around the 2,000 level. That could be followed by a rally to around the 2400 level. Then look out below. If 1800 does not hold then it could be back to 2009 levels, around 1,200.
Only my conjecture from looking at the NDX chart.
Disclaimer: This post is not meant as Financial or Investment Advice. Do your own Due Diligence. Always seek the help and advice from your own Financial and Investment Advisors before placing bets at the Financial markets casinos. I am not a registered Financial or Investment Advisor. I am not making any suggestion about what to buy or what to sell. You can lose money, possibly all of it, when placing bets at the Financial Markets casinos. This post is meant for entertainment purposes only.