For those technically inclined, the important numbers to keep in mind are 3630 and 3350. A cash close below 3630 is a violation of the bull market continuation channel. A close below 3350 is the maximum Fibonacci retracement allowed for the NDX bull market to still be considered a bull market. Our bet is no. Confidence in this bull market rests with the promise of the new era.
Tech is the new era.
Anything that breaks confidence in tech most likely results in punishment across the board. As you know, we closed below 3630 on the NDX Wednesday only to come ramping back Thursday with the quarter end activity. The action of two days clearly does not a trend make. There is obviously a reserve of liquidity out there that had decided enough was enough, for the moment. Watch this chart over the weeks and months ahead.