Saturday, June 07, 2008

$NDX Update for 06.07.2008


Monthly chart shows initial selling in the first week of June 2008. So far, the .618 fib level area seems to be current resistance. Will this just be profit-taking, or will there be more selling as traders/investors start to head for the exits?

Weekly chart shows the resistance encountered by the bulls at the .618 fib area. There was initial profit-taking as the market hit the .618 fib level, but the following week, the bulls managed to hold their ground. The past week, there has been once again, selling pressure off this resistance level,. However, the selling pressure for this index has not been as much as for the $INDU and the $SPX.

The Daily chart shows that the sellers gapped down the open in their haste to exit their positions. The index remains above both the 200sma and the up trendline in place. Look for the both to be broken next week. Looks like there is a possible completion of 5 waves up into the .618 fib area. IF there are 5 waves complete, THEN look for a retracement of the last leg up from the March low.

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