Sunday, June 22, 2008

$NDX Update for 06.22.2008


Monthly chart shows that the bears have managed to erase all the gains made by the bulls the month before. So far, this index seems to be stronger than either the $SPX and the $INDU. As with the other indices, the NAZ seems to be stuck in consolidation/trading range.

Weekly chart shows the index retraced to the .618 fib level of the whole move down. Sellers came out in force at the .618 resistance level, with selling the past three weeks.

Daily chart better shows the retracement to the .618 fib level. One can make the case for the abc three wave pattern into the .618 fib level. Friday's price action shows that the bears were in a hurry to exit their positions, as they gapped dowbnthe open and sold off into the close. Look for continued weakness and re-test of the March 2008 low in the week(s) to follow.

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