NAZ 100 And SPX

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From last Sunday's Comments on the NAZ 100:

"This rally is looking like a Bear Flag..."higher highs and higher lows" AT RESISTANCE at the 200 DMA, and at the confluence of the 50% Fibonnaci Retracement and the Bullish Falling Wedge target:

1962,16 - is the top of the "possible" Bear Flag for Monday, April 28
1957.59 - is the 200 DMA, as of the April 25 close.
1954.99 - is the Bullish Falling Wedge target IN PLAY
1953.90 - is the 50% Retracement of the decline from Halloween

The 50/200DMAs in the NAZ 100, however, are badly inverted here: the 50 is well below the 200 DMA, by almost 200 points. While this index still "could" accelerate alot higher here like GIGM did, that doesn't seem likely without some kind of pullback/consolidation first. If we get into the NDX 1950's. I'd be inclined to protect profits and "sell some into strength" and particularly inclined to "take some profits when the target gets MADE."

Yesterday's high in the NAZ 100 was 1953.59, very near the targets and resistance. Nice 11% rally in just over one month's time from the March 24 Bullish Falling Wedge breakout, at 1761.72.

The index finished yesterday's session on a Bearish Engulfing pattern that also closed below the bottom of the Bear Flag. That puts 1867.72 and 1845.24 IN PLAY. The latter would be a fill of the April 18 gap, if it gets MADE.

The SPX was rejected again yesterday at TRIPLE resistance. Yesterday's run-up to a new high for the move, rejection, and subsequent selloff to a close below the prior day's low on a Bearish Inverted Hangman suggests at least a test of the 20DMA and possibly another test of the top of the channel support, roughly SPX 1368-1371.

A short squeeze likely would be on if the SPX takes out 1406 to the upside. Monday's and Wednesday's rallies to TRIPLE resistance were an invitation to sell and/or sell short, and given the sharp final hour selloffs both days, it looks like the shorts accepted the invitation. They'll have to "buy to cover" on any push through 1406 that looks convincing.