NDX Topping Setup Completes

I had a couple of overhead targets that I was looking for this week, and the chances of making the ambitious one on SPX in the 4350 area finally withered and died with the hawkish FOMC comments yesterday.

The more important one was on NDX however, and that has completed as expected this week, with the final part of the topping setup there completed with the new all time high today.

There is now a very attractive nested double top setup there, and a possible daily RSI 5 sell signal is brewing.

NDX daily chart:

SPX made the minimum bull flag target at the retest of the all time high, but needed a hard break over the 4250 area to open the possible move to main rising wedge resistance now in the 4350 area. That never happened, and as this bullish opex week draws to a close, and we approach next week, which is one of the most historically bearish weeks of the year, the next likely issue is whether SPX can hold main rising wedge support, currently in the 4170 area. That wasn’t quite tested at the lows today.

SPX daily chart:

Tomorrow is opex Friday and leans neutral. We may or may not see a move of any interest tomorrow. In the short term on SPX today has been an extended test of short term trend support/resistance at the 50 hour MA, currently at 4236. I’m also watching the daily middle band as support, currently in the 4214 area.

SPX 60min chart:

Next week, as I mentioned, is historically one of the most bearish weeks of the year, and the start of July the week after that will start the most bearish four months of the year historically on NDX. We may be watching a significant high forming on NDX this week, and if SPX breaks rising wedge support next week, then the topping setup is looking pretty attractive on SPX as well.

We are running a commodity trading webinar at theartofchart.net has been an hour after the close tomorrow Friday 18th June. As usual we will be looking at three promising trade setups and designing three options setups to trade those. You can register for that here, and the registration links for that and the other free webinars this month are also of course on our June Free Webinars page.