We hit some longer term horizontal resistance today, but what was more interesting to me was that the longest sustainable rally in the last 3 years has been 375 and there have actually been 3 of them.
We hit the 375 today --
We can certainly power up some more, but a more likely scenario would be a pull back or some consolidation sideways like it did for several months after the rally ended in Nov 06. There were severe pull backs in July 07 and Nov 07 after those large rallies and remember those were in some pretty good economic times.
Technically we are still in an intermediate downtrend so it should be a surprise if we decided to grind down for another month of so. The short term chart is certainly saying up, but the NDX is smacking into resistance so to bust through is going to take a lot of buyers stepping up to drink some potent cool-aid. It can happen and I'll be ready for it, but it will truely amaze me if we just keep heading up and the VIX keeps dropping.
NDX 3 Year Weekly Chart:
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