NASDAQ leads the market - for how long?

Starting from the October 10, 2007 the S&P 500 and the DJI are in the deep correction. In opposite, the NASDAQ 100 has moved flat all this time.

The Last 2 sessions we saw the recovery from the correction and the logical question could be asked: “is this the end? Will market continue to recover or it’s just a temporary stop before further drop?”

Today we saw big volume on the NASDAQ 100. No doubt, some “big money” played “some games” in this sector today. As a rule after such big volume the market need some release and I would not expect the NASDAQ 100 move strongly further up. I opposite I would expect slow down in the up-move and maybe only modest rising, but most likely flat market over the next few sessions.

If I see that the NASDAQ 100 starts to follow this scenario, most likely I will start thinking on selling short QQQQ option calls.