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Depending on how this week closes on the NDX I think we can see a shift of leadership over to the NDX instead of the Dow which has been the case this month.

We need to see the weekly close of the NDX close around these levels.

Weekly chart of the NDX

If this does occur and I get a buy signal on the weekly NDX chart, then we are looking the Head and Shoulders potentially being invalidated as the NDX moves up to restest its HIGHS. Then we want to look for a double top.

Daily chart of the NDX

You can see in the daily NDX chart we are close to the neckline on the H&S pattern. I’m starting to think the pattern will get invalidated, but I’m waiting to see if that occurs rather than jumping the gun.

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