THE SWEET SPOT

According to wikipedia: A sweet spot is a place, often numerical as opposed to physical, where a combination of factors suggest a particularly suitable solution. The term has its origin in sports where the sweet spot is the best place to grip a bat, rachet, or club.

I have made reference to a sweet spot in the market and want to show what it looks like. In time the markets will prove it whether it is sweet or no.

I have two charts today. The half day and the daily NDX 100 Index. The NDX 100 is the largest 100 companies in the Nasdaq stock exchange. The first chart, a 20 day 4 hour chart, clearly shows the fast band of moving averages have crossed above the slow band and we have a series of higher highs and higher lows - the classic definition of an uptrend. Click on chart to enlarge.
The second chart, a 3 month daily chart, shows a long downtrend that looks like it is coming to a close. At least it has made some kind of bottom formation and the fast band of moving averages has crossed above the slow band for the first time in 3 months. There is a lot of support here where all the moving averages converge. Will price hold here? Only time will tell but clearly this is where the sweet spot would be if this proves to be a reversal in the market from a downtrend to an uptrend.