The NDX is now the only major index that hasn't yet tested it's 100MA daily. DOW is testing it's 100MA and SPX is testing it's 200MA. IF the DOW breaks the 100MA adn SPX breaks the 200MA it will be creating a market environment for the NDX to possilby test it's 100MA. The daily candle we printed today sure looks like it's eager to jump down to the 100MA, it's just a quick 32 points away. I wouldn't be surprised to see it touch 1904 tomorrow even if it's just a tap and bounce. (That's not a prediction, but only what I see as technically possible based on the chart and candle pattern). I am always keen to find levels of support and resistance as it helps me on my targets, entries and exits.
If we open lower tomorrow I'm first going to look for support on the backside of the red trendline, and if that breaks we'll see if it can hold the 1912 area that's already held 3 times for us in the last 2 weeks. Be aware that the forth knock on that door may open it.
Nothing would surprise me with this index tomorrow -- BE PREPARED FOR ANYTHING including large moves in one direction OR intraday reversals that don't make any sense. There MAY be a lot of fear out there to hold over the weekend so prepare too for a late afternoon sell off. That being said, be prepared also for the exact opposite to occur with buying being the predominate action tomorrow.
In summary, don't have any preconcieved ideas of what the movement will be tomorrow - just be prepared for anything and go with the flow.
NDX 20 Day / 30 Minute Chart
NDX 6 Month / Daily Chart (Note the ugly bearish topping tail candle we made today)
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