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US Markets - Update on the NDX from our February 10 sell setup....
Cerundolo Investment Research
US Markets Update
Volume 6, Issue 12
February 14, 2022
Items of Interest:
On February 10, we sent out the chart below of the NDX highlighting the short setting up, with the trigger being a break below 14735. The downside target based on this systematic trading system gave us a target zone of 14178-14100, and the low came in at 14184.25, close enough for government work, as they say. This is a decline of -4% from that trigger level. Who knew what the catalyst would be to get the market to sell off as it did, not us, but the pattern alone suggested weakness in the technical structure of the index. The first chart was sent out on February 10, followed by the updated chart as of 12:10 on February 14. For those trading futures, we would cover the short here in the NDX and stand aside to see how the morning session goes. Our favored long group/sector remains energy, where we continue to see higher prices on the commodity complex and stocks. This call on energy was initiated in November 2020. Happy to help in providing our most favored longs.
Current Chart:
