Finally after a month of trading in a range bound, NDX broke out this morning. Now the clear downward trend has initiated. A move below the 50 DMA for the 1st time since the 1st week of July. As we are witnessing today and from what can be seen below is the 200 DMA,, when does it gets to that point is anybody's guess, I am not predicting anything here. Additionally something to keep in mind is the 50 DMA is still upwards slopping. For a larger move to happen, we will have to see it slope downward crossing below the 200 DMA and we can see even a larger move to the down side. Typically the longer the market stays in a consolidation phase the sharper the breakout that follows.
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