Although we managed to squeeze 299 points out of this short
yesterday we could have got another 150 or so more had we
stayed with it al the way down to the dynamic which has once
again saved it. In doing so it has fallen 11% (6258 is 11% off
the top, the low was 6254, not bad). A standard 'correction'
runs to 9-11% and a bigger one 19-21%. So far, so standard.
Am looking to buy the dip today towards the open looking for
a rally to 6694 at least and maybe to 6787 at best before it
falls away again.
The dynamic below price is critical now to the overall uptrend
staying in tact from here. It must continue to hold up all
declines now. Any failure to hold this dynamic will tip Nasdaq
into the hands of the bears and force us to switch from buying
dips to selling rallies for the forseeable future. Do not expect
this to happen, but need to remain vigilant to all possibilities
and ready to reverse to short if this price action does develop
this week from here.