NDX another leg high or lower??

30 Min Chart shows could be another leg Lower:

Daily Chart shows could be another leg higher:

NDX

June 14, 2017

NDX down $143 BTFD?

NDX fell $143, almost a replay of 3/21 which put us in a box for a month until 4/21. The market gaped up out of that box on 4/22. What happened today could do the same? We trade in a box for a month and breakout after a month or stay in it for the rest of the summer? Is it time to buy the dip? I would not be surprised to see that happen tomorrow as we have seen it happen so often. I was thinking of the consequences of the dip buyers today if you thought it was just another day where the market reverses mid day and closes near the highs of the day. It was definitely a trending day with one straight line downwards VIX was up +4.9 USD was down -5.8 the markets reaction is unknown to me either political of banks related? who knows. I believe it was just another correction that happens after a steep market moves.

GDP Price Index released Friday AM

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12:30 USD Gross Domestic Product Price Index (Q1)  PRELIMINAR    2.0%    2.1%

12:30 USD Gross Domestic Product Annualized (Q1)  PRELIMINAR    1.3%    2.1%

Changes in the GDP price index are followed as an indicator of inflationary pressure that may anticipate interest rates to rise. 

Generally speaking, a high reading is seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.

NDX breakout

NDX gaped up today, out of a consolidation zone, it has been building since the end of Feb 17. This huge gap up is an interesting move and will have to see if it gets filled in the next few day or the markets continue to keep its uptrend, that started since the election on Nov 8th. Another interesting observation is that NDX is at new all time high but the SPY and DJI are not. The catalyst for the move seems to be the French election results that came out today as economist were probably closely watching European  politics after the BRIXIT's unexpected results.

Some important earning coming out this Thurs Apr 27 include GOOG, INTC.

An end to the relentless bull?

Today NDX slide $80 the overall move was more then $100 since the market opened up $25 in the morning, moved up a little more and then turned around and printed one the longest candles that I have not seen in a long time. The next logical stop is the 50DMA just below todays price at $5300 if the market continues its slide tomorrow we will certainly see some activity near that price level.
I think most people trading this recent uptrend may have not seen a down move of this scale and how rapid price action was today. I can imagine some traders giving up all the year worth of profits with a move like this and may be reconsidering carrier options tonight. One thing I am sure of is that this kind of move brings volatility and the daily rage expands for some time preceding the move. In my opinion tomorrow could be another down day as days like this signals a trend reversal or it could another dip that gets bought up in a hurry by hungry bulls just like we have seen with this uptrend.

Fed rate hike expected in March

Expectation for a March rate hike have been raised to 81%. The Federal Open Market Committee meeting is scheduled for March 14-15.