Weekly Nasdaq NDX Index. Photo credit ccvic.zenfolio.com
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.
Weekly VIX. Photo credit ccvic.zenfolio.com
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.
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