The Nasdaq 100 Index appears to be on a mission towards the 2223 to 2239 level which is a key level of resistance and is likely to cause some type of downside reaction.
We could get there as early as mid November 2010 or perhaps a bit later. I think it is clear at this point that the NDX is long overdue for some type of correction. It continues to squeeze higher and higher in ‘trickle up’ fashion similar to the sp500.
To be sure, the NDX has shown in the past that it is capable of rather significant downward corrective action. The action of the last 2 months has shown very little downside volatility. So keep a close watch on the 2223 to 2239 level on the NDX 100 as it could be an important trigger for a corrective sell.
Assuming 2223 to 2239 is achieved on the NDX 100, then 2140 to 2150 would seem like an ideal minor support area and first target.