Two Charts, One revelation
First chart is an updated view of the $NDX. It's just an updated view of what I posted last night, but I removed the black circle highlighting the median line @ the 1990 area.
Notice how the median line held today. If we break below today's lows, I suspect the next area we'll test is ~1960.
I've been stalking McDermott Intl (MDR) for the last week or so (since FLR posted its blow out quarter). It's setting up for a potential inverse head & shoulders here with a conservative head measurement of ~20 points. That could make MDR an $80 stock over the next few months, providing the engineering sector (MDR, FLR, FWLT, JEC) continues to act well and the market cooperates.
Given the state of the markets, I may play this one with options to limit my downside risk.
And as for my revelation for the day (and feel free to comment on this), but I've noticed (yes, you can call me slow), that stocks that have broken out of their recent congestion areas tend to trade a lot better.
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