Well Traders, another day, another small move on the $NDX. Today the index finished up $7.21 to end at $1,846.34. The $NDX hit $1,850 at one point but fell back during the day. We also finished with a "Bearish Long Legged Doji" which may bode well for my trade. It may signal the top of this recent trend, and with the MACD and STO so high right now, I expect the $NDX to start to fall off tomorrow. Let's hope it heads back to my preferred $1,771 level!Who is my "New Friend?" Well, I went back to the 5-Year chart and discovered something very interesting, a nice channel the $NDX is trading in right now. I drew the pattern in so I could see where it went and low and behod, it gives me wonderful resistance below my Bear Call spread. I have marked it in BLUE on both charts, but here is the 5-Year so you can see it for yourself.
That is pretty convincing stuff. Now, that does NOT mean the index can't break that trend, it just means I have a new ally to help the March Iron Condor.Happy Trading!
1 comment:
The more crazy the graph looks, the better it MUST be!
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