Saturday, June 28, 2008

$NDX Update for 06.28.2008

Monthly chart shows this index still to be above an up trendline in place. However, the chart is shaping up to make a lower market structure high. So far, the bears have taken back most of the gains made in the last two months.

Weekly chart better shows the lower high made in the first week of June 2008. Currently the index is below all its key moving averages on this timeframe.

Daily chart shows that the bears gapped down the open of Thursday's trading session, in their haste to exit their positions. This created a kicker signal pattern, indicating the major change in investor/trader sentiment. Friday's trading session resulted in a doji candle pattern, indicating indecision between the bulls and the bears. Look to next week's trading session for better sense of direction. Will the market retrace before heading lower, or will the selling pressure pick up quickly?

No comments: