As expected, weakness has continued in the equity markets this week. However, based on the NDX/SPX topping comparative that I have been highlighting over the past few weeks, the downside exhaustion-proportional equivalent of the pattern is ~2525. Considering that the NDX finished today at 2531.87, the risk/rewards for continuing to press shorts here is weak. Based on this comparative, risk will shift to the upside in equities through the balance of November into December. I would estimate that the downside risks for the NDX could extend in the short-term to the zone of the June 5th/6th gap.
*This note and chart was edited at 4:30 EST to include todays close for the NDX.