$NDX Update for 05.25.2008

NASDAQ 100 INDEX - $NDX

Monthly chart shows the bulls encountered resistance and selling presssure off the .618 fib retracement area. While there has been profit-taking and some selling pressure, as of today, the index remains above its open for the month of May 2008.

Weekly chart shows a large bearish engulfing candle pattern created by last week's trading activity. The bears have managed to take back all the gains made by the bulls the prior week. So far on the weekly chart, we have now made a .618 retracement of the prior down move, which had 5 waves. The bearish engulfing candle pattern signals a change in investor sentiment. Look for continuation lower next week as likely.

Daily chart shows support off the 200sma. Thursday and Friday's trading sessions both resulted in a doji/spinning top candle pattern, indicating indecision between the bulls and the bears. Look to next week's open to get better sense of direction. This index seems to be stronger than both the $SPX and the $INDU as of today.