Tuesday, January 01, 2008

$NDX Analysis for 01.01.2008


Monthly chart shows an abc 3 wave and 1:1 pattern into October 2007 high, where the bulls did some profit-taking. December's trading activity resulted in a doji, indicating indecision between the bulls and the bears. This index is stronger than both the $SPX and the $INDU. The index currently remains above all its key moving averages, especially the 8ema for now. No sell signal in place as of yet on this timeframe.

Weekly chart shows more profit-taking activity in the last 2 weeks of December 2007. Uptrend line drawn from the July 2007 low currently remains intact. IF this trendline is broken, THEN look for a deeper retracement.

Daily chart shows index to be in consolidation range since its November low was made. While the bulls have tried to take it up, they were soon overcome by bears eager to sell. While the index currently remains above its 200sma, any further weakness will see that tested and more likely broken.

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