Every weekend I do my full analysis and for the most part these have been pretty good. When I don’t know and markets are mixed I am clear about that, but when I am looking for a setup then I have thought that through very carefully.

Due to YR2 rejection and pending MP break I came into the week already short NDX. I did not expect today’s move to happen with QQQ managing to close above the MP. So I am heeding this message of the market and thinking buyers will be stepping in near the end of Q4 anticipating another leg up.

So far DJI is holding above its MP, but VIX is pretty much bang on YP. VXX could have rallied today but didn’t.

Bottom line - 3 yearly levels in play and there isn’t a clear move yet. But today’s lack of bearish follow through on NDX is a definite point for the bulls.

PS: Bonds are falling off a cliff. 9/11 selling on both ZB and ZN below all pivots has been the definitive move. If markets were that concerned about a trade war these probably will be steady. Ball is will the risk on bulls.

I will change my tune of DJI don’t hold above the YR1 and we see further NDX YR2 rejection, along with VIX YP clear.

DJI, NDX and VIX below.

24 2 NDX D.png