Is The Real Key To A Rally The Nasdaq Hitting The November Lows?

The markets work in mysterious ways. As they trade, people try and pick tops and bottoms, selling, buying, shorting, covering. In general, if the majority thinks it is a bottom it is never the bottom and if the majority thinks it is a top, it is never a top. Using that logic, I bring you the chart of the SPY (S&P) and the Nasdaq. Everyone thought the markets would bounce when the DOW hit the November lows. This did not happen. Then, everyone thought the markets would bounce at the S&P November lows, slightly lower than the DOW lows. This also, did not happen. At this point people are beginning to get bearish and think the market is going much lower. In my opinion, the strongest index may need to hit the November lows. No one is talking about that, which may indicate that is the spot. If and when it does, that may be the spot for this market to bounce and bounce hard! Refer to the Research Center for more info and technical trend line analysis. RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2009 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd.