Saturday, January 26, 2008

$NDX Update for 01.26.2008


Monthly chart shows sellers found support off the up trendline in place. No buy signal/pattern evident on this timeframe.

Weekly chart shows sellers were in a hurry to exit their holding, as evidenced by the large gap down into current support. Early buyers were there waiting to enter into positions, but were soon met with selling/profit-taking on Friday. Those traders who worried about the potential for recession used the positive momentum to exit positions on Friday.

Daily chart shows Friday's trading activity resulted in a large bearish engulfing reversal candle pattern. Look for a test of the current low. IF price action traces out a consolidation/trading range, THEN look a lower low. No buy signal/pattern evident on this timeframe.

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