Best Financial Markets Analysis Article The hourly chart of the NDX looks unbelievably bearish. There is no hourly support whatsoever. As I had mentioned in prior e-mails, the Broadening Wedge in the Head and Shoulders pattern compel me to believe the crash is imminent. The market held up during options expiration, but that does not mean that we can't have a serious gap down Monday morning.

Just because this is the positive season in the market, doesn't mean it cannot breakdown. However it is rare. The last time we have a breakdown during the positive season was in October 1973. The market sold off till July 1974 and lost 55% of its value.

FYI, the NDX is below both the intermediate-term trend support at 2313 and 50 day moving average at 2288.61. That is why I am so interested that there is no selling activity, given the bearish position in the NASDAQ.

SPX fell through intermediate-term trend support at 1222.13 and has come back multiple times to challenge it, with no success. Current cycle bottom support is at 1212.24 and the 50 day moving average is at 1206.03.

However, maximum option pain in the SPX was at 1240.00, so I remain puzzled as to why the SPX held at lower level. A Monday morning gap through the 50 day moving average has a high certainty of completing a decline at least to the head and shoulders target of 1160.00 early next week.

Good luck and good trading!

Regards,

Tony

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