Confident Waning in NDX
Given the inability of the NDX to follow-through from yesterday's recovery high close, along with the Google Massacre and the damage sustained to the otherwise potentially bullish pattern off of the 2/10 low, I am considerably less confident in this morning's constructive outlook than I was a few hours ago. In fact, all of the action from the 2/10 low into today's high NOW resembles a recovery rally within a larger downside correction, rather than the start of a new upleg. Barring a sudden upside reversal and climb above yesterday's high at 1701.10, we should expect more weakness that presses the NDX into a test of important support between 1650 and 1630, which if violated should trigger a plunge to 1600-1580 thereafter.
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