Resistance tested in Nasdaq 100 & Baltic Dry Index in opex time zone

Investors and traders (including KI$$ swing traders), beware. We're testing resistance going into this Friday's options expiration "fun and games" so don't adopt a longer-term bullish view unless this resistance crumbles under continued positive movement next week. The Baltic Dry Index ($BDI) chart below shows that after an initial rise, followed by a triangular range, $BDI spiked up in recent weeks, but testing approximately 50% retracement back to the prior peak. Meanwhile, the Nasdaq McClellan Oscillator ($NAMO) is testing its own retracement spike with a lower high (and flagging CCI) as the Nasdaq 100 index ($NDX is the symbol for this index, which traders often trade using the QQQ as their ETF) makes a higher high now retracing about 50 to 61.8% back to its high of this year (plus its 200-day moving average) It's looking like negative divergence between $NDX price and the $NAMO as these key price retracement levels are being tested.

Opex can allow for more extended moves as trades unwind, and we must also see whether or not these resistance levels will cause reversal patterns sending prices back down. After all, it's possible that resistance may crumble and a new bullish wave could theoretically move not only higher, but perhaps even to new highs for the year. But I'm thinking we're more likely to see another topping out in the next few trading days, so I'm getting poised for that.

The $TRIN indicator chart at bottom shows that the market is generally oversold, which can extend for a long time in downtrends, yet is getting overbought short-term. This doesn't guarantee whether or not the resistance levels will be overcome. Objective traders - including "Keep It $imple $wings" (KI$$, my term) - should be prepared for a possible swing top over the next few days, and to position for another swing downward to possible new lows, unless the stock market can continue above this week's high after Monday (time) and/or this resistance area around the 200-dma (price). That's my best take on all this - happy market navigating, all!