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A key support/resistance line dating back over 20 years looks to be in play right now. At the same time this key resistance/support line is at play, the NDX/VXN spread is the largest since the Tech bubble back in 2000. (see post here)
This key line and the “lack of fear” spread suggest that investors harvest until resistance is broken! Not a bad place to look to score on defense with a stop either!!!
Mike…some friends call me Kris Kringle, so you never know. 😉 Even if you don’t feel rich Mike go out and buy something and spread the good cheer! Ho, Ho, Ho Tis the season!
Chris that is a very cool graph.
Under normal economic conditions, looks like this would be a major line of resistance. But I can’t help believing if SPX stalls here, Bernanke et al will do something wacky to “stimulate” the prices of the stock market so everyone “feels” rich and buys stuff. What interesting times we live in. If you are right on this one, Chris, I will never doubt elves again.