Well Traders, the $NDX is acting just like clockwork. As you remember on Friday, the index fell to the $1761 support level (after breaking diagonal support) and rebounded with a furious rally at the end of the day to maintain the diagonal support. The STO and MACD were indicating an upturn and low and behold, that is exactly what we got! This is one of the most beautiful Ascending Channel charts since it just stays withing the range and bounces merrily along inside.This also worries me.
As you will note, the December 21 Expiration Date looks like my $1850 strike price may not hold, meaning this will not be a successful trade. Even the bad economic news on Friday and with Pfizer's news on the Dow today (which was also up huge) hasn't been enough to temper this very hot market. I could certainly use a nice big down day, but technically speaking, it looks like a few more days of sweating an uptrend before we see another pullback. A few more $25 up days and I'll be singing the holiday blues!
Happy Trading!
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