NDX is trading in the range again

After making new highs for the year last week, NDX is back in the range ($4836- $4750) that it has been trading since the start of Aug end of July this year. At the moment it looks as if the 50DMA ($4800) is proving to be the resistance/floor for the index. But for it to stay in the range, the bottom of this range is around $4750 so we will have to wait and see if that holds in case we break below the 50DMA.

NDX breaking of the range today

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.

NDX moving in a tight range

Since the beginning of August, NDX is range bound 483*-475*.